Powell on 60 Minutes
- Policy rate now "roughly neutral"
- Powell says he doesn't believe Trump has the power to fire him
- Says plans to serve his 4 year term
- China, Brexit and Europe are risks to US economy
- Still feels there will be materially positive growth in EU
- Main risks to US are from abroad
- We think the US outlook is a positive one
- Repeats that economy is in a good place
- Says watching retail sales after a weak December but that there is some evidence of a rebound in January
- Notes Chinese steps to support growth
- Financial conditions 'generally healthy'
- Stock market valuations mostly at 'normal' long-term levels
- Large number of auto loan defaults is a product of the fact that the number of auto loans is much higher
Looking at rates, there isn't much to change the outlook here for an extended pause. There is a definite and growing belief at the Fed that the US is a lone strong economy but the inference is that US growth alone wont' be enough to spark rate hikes.
