- Forward guidance has supported the economy by helping hold down medium and long term interest rates
- Guidance has been effective at shaping the markets expectations and so holding down volatility
- Low potential growth may warrant holding down rates
- Spikes in volatility may be difficult to avoid
- Forward guidance has provided meaningful support
- Lift off timing depends on state of economy
- US labour market has rebounded pretty strongly
- Sees a significant amount of slack still in labour force
- Fed needs signs that the economy is getting tight before raising rates
- Labour force slack amount key for when rates increase
Jerome Powell is speaking at the Institute of international finance meeting in London
