Chair Powell continues testimony on Capitol Hill

  • wages rising at a healthy level, but would have expected to see wages move up more
  • inflation and unemployment link now a faint heartbeat
  • economy can sustain much lower jobless than we thought
  • nothing will distract Fed from carrying out his job
  • most important concerns are crosscurrents of trade policy and slowing global growth
  • would add that persistent low inflation is also a concern
  • says no reason why half-century low unemployment level can't continue
  • decline in trend in labor participation rate is largely due to aging
  • trade policy is connected to the rising business uncertainty
  • when supply chains are call into question businesses can pull back
  • does it see USD status as reserve currency under threat
  • says monetary policy is always about the outlook
  • yield curve is one of the things they watch
  • not looking for authorization to buy a wider range of assets