Powell at Jackson Hole on August 24, 2018:
- There doesn't seem to be elevated risk of overheating
- Sees good reason to expect strong economy to continue
- There is no clear sign inflation accelerating above the Fed's target
- Gradual rate hikes navigate risks of going too slowly or too fast
- There does not seem to be elevated risk of overheating
- Most who want a job can find one
- He's confident Fed would do whatever it takes should inflation expectations shift
- Full text
A bit dovish at first take. The lines on the conditions for the hikes are a bit soft and there isn't the same kind of optimism on the economy that we heard from a few other Fed members at Jackson Hole.
The market is increasingly looking towards 2019 and the path of rates then. Powell here isn't signaling a move above 'neutral' in 2019. There's a bit of a 'wait and see' tone here.
Quotable:
"As the most recent FOMC statement indicates, if the strong growth in income and jobs continues, further gradual increase in the target range for the federal funds rate will likely be appropriate."
