Fed Powell's prepared text released
The prepared remarks from Fed's chair Powell's testimony before the joint economic committee in Congress says:
- Policy appropriate as long as economy stays on track
- Baseline Outlook favorable but noteworthy risks remain
- Sluggish growth abroad, trade uncertainty pose risks
- Monitoring financial risks that are at moderate levels
- Price pressures mutes, expectations at low end of range
- Business debt high, core of financial sector resilient
- Says he remains concerned by high, rising federal debt
- Investors risk appetite elevated in some asset classes
- Fiscal policy support important for economy in downturn
- Consumption solid; job market, incomes favorable
- A sustainable expansion of economic activity, strong labor market and inflation near symmetric 2% goal as most likely
- Persistent below target inflation could lead to slide in longer-term inflation expectations
- Levels of vulnerabilities and financial system at a moderate level
- Federal government debt could restrain fiscal policy makers ability to support US economic activity in a downturn
For the December meeting, the expectations for unchanged policy are at 93.6%. The January meeting has expectations of a cut of 24% currently. The comments from Powell suggest that the Fed will indeed pause at the December meeting.
