Highlights from Fed's Powell testimony

Author: Greg Michalowski | Category: Central Banks

Fed chair is speaking in front of the Senate banking panel

So far the testimony from Fed's Powell has been pretty tame. There is not been a lot of talk about the economy or policy. Below will be a stream of some of the highlights from his testimony:

  • Very focused on threat of cyber attacks
  • Cyber attacks could accept confidence in financial sector
  • The biggest issue of the federal budget is healthcare spending
  • US spending on healthcare very high for returns
  • Fed likely to need to QE, forward guidance in a downturn
  • He would be concerned about the level of the US debt
  • Need federal debt growth to be slower than GDP growth
  • Housing sector during better but affordability and issue
  • Uncertainty around trade has declined
  • Less uncertainty may mean upside for investment
  • He thinks there is more upside to the US labor participation rate
  • US energy sector now acts as economic shock absorber
  • no reason why lower jobless, rising wages can go on
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