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
