Fed's Powell speaks in Rhode Island
- the Fed would respond accordingly if developments cause material reassessment of economic outlook
- Fed policy supporting decisive return to 2% inflation
- policy appropriate provided economic remains on track
- if outlook changes materially, the policy to change as well
- monetary policy well-positioned to support Fed's goals
- sees glass much more than half full, can fill it further
- current monetary policy likely to remain appropriate as long as economic data is consistent with moderate growth
- yellow flags and economy include muted inflation and weakness in manufacturing
- policymakers favorable outlook for US economy is founded in strong household spending
- weak foreign growth hurts exports and increases risks that weakness will spread more broadly
- lower monthly job gains .2 and economy with somewhat less momentum than previously thought
- monetary policy well-positioned to support labor market and 2% inflation goal
There is a little reaction to the comments from the Fed Chair. The comments support the idea that the Fed is on hold for now with a strong consumer buoying the economy with risks eyed but not at high alert levels.
