Fed's Powell

  • picture mixed in answer to asset bubble question
  • leverage in financial system is moderate
  • some asset prices are elevated by some measures
  • Fed expects inflation to move up but don't expect that to be persistent or high
  • inflation dynamics don't intend to change overnight
  • economy still has a great deal of slack
  • Fed guidance tells markets clearly when we will taper bond buys and raise rates
  • We have tools to deal with unwanted higher inflation