Powell Q&A: There is no reason why expansion can't continue
Powell answers questions following his speech
We monitor financial risks very closely, they're moderate overall
- Job growth is slowing
- Yield curve control is something worth looking at
- Repeats that the Fed isn't in favor of negative rates
- Likens current episode to mid-90s modest rate cuts, says that's the 'spirit' of current cuts
- Says it's possible that rate cuts hurt consumer confidence but but hasn't seen signs of it
- We want inflation expectations to be centered right at 2%
- Do not want to get on 'disinflationary' road
- I watch markets very closely
- The geopolitical risks are important right now.
- We've learned that the unemployment rate can just lower lower than we previously believed
- We've got a 'solid' consumer. US economy feels sustainable, not aspect is booming
- Wages are rising but right around the rate of productivity
He sounds reluctant to cut to my ear.