Powell answers questions from reporters
- We think of the target as symmetric
- I wouldn't think of inflation below 2% as 'tolerating' lower inflation
- The dot plot is the median so there is a range of views
- We don't talk about the median
- The natural rate of unemployment isn't something we can observe directly
- Powell says he will be 'thinking about' moving to 8 press conferences, but doesn't want it to be seen as a signal on the path of rates
- Says is considering moving to 8 press conferences a year but doesn't want it to be seen as a signal on rates
- Does not think changes in trade policy so far should affect outlook
- FOMC members noted they heard concerns about future trade action and the effect on the future outlook
- I wouldn't put a lot of emphasis onto the 2020 forecasts, it's so far out that it could change so much. It's not a signal
- "We don't have the ability to see that far into the future"
- We don't see housing prices as too high
- Big firms are less vulnerable to liquidity issues
By the way, Powell is a serious hand-talker. Not quite at Poloz's levels but he can wag 'em.
There hasn't been much to move the market here. What I can say is that Powell is very comfortable in this situation. He's candid, directly answers the questions and interesting, which is refreshing.
