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WEDNESDAY, DECEMBER 19, 2018 - 14:55
Powell Excerpt: Outlook Still Positive For 2019
WASHINGTON (MN) - The following is a response of Federal Reserve Chairman Jerome Powell to a question from a reporter at his press conference following Wednesday's Federal Open Market Committee meeting.
Question: Hi, Lawrence Fox Business Network. Thank you, Mr. Chairman. We have seen enormous volatility in the economy. When do you think these pauses need to come in next year? Do we need to keep this gradual? And then in addition, what data are you specifically looking at for you, that shows when the Federal Reserve starts to become that headwind in the economy with the rates?
Powell: You know, we are watching -- we have a strong forecast, generally for next year. That includes growth of 2 to 2.5%, and it includes growth at a strong enough level to continue driving unemployment down and inflation near 2%. That's a pretty positive forecast. So to make further moves, I will be looking for data that suggests that that's, in fact, the path that we are on. As I mentioned, once you -- once you are broadly speaking in the range of neutral, I think -- I think it's appropriate to be putting aside individual estimates of that, and be looking at what the incoming data are telling you about the outlook, updating your estimates of what neutral might be, of what the natural rate of unemployment might be, of the state of the economy and letting that lead you to adjust your outlook and therefore your appropriate path for policy. So that's what we mean when we say we are data dependent. Of course, we are always data dependent but I think there's particular meeting in that context which is that.
--MNI Washington Bureau; +1 (973) 494-2611; email: [email protected]
WEDNESDAY, DECEMBER 19, 2018 - 14:55
Powell Excerpt: Outlook Still Positive For 2019
WASHINGTON (MN) - The following is a response of Federal Reserve Chairman Jerome Powell to a question from a reporter at his press conference following Wednesday's Federal Open Market Committee meeting.
Question: Hi, Lawrence Fox Business Network. Thank you, Mr. Chairman. We have seen enormous volatility in the economy. When do you think these pauses need to come in next year? Do we need to keep this gradual? And then in addition, what data are you specifically looking at for you, that shows when the Federal Reserve starts to become that headwind in the economy with the rates?
Powell: You know, we are watching -- we have a strong forecast, generally for next year. That includes growth of 2 to 2.5%, and it includes growth at a strong enough level to continue driving unemployment down and inflation near 2%. That's a pretty positive forecast. So to make further moves, I will be looking for data that suggests that that's, in fact, the path that we are on. As I mentioned, once you -- once you are broadly speaking in the range of neutral, I think -- I think it's appropriate to be putting aside individual estimates of that, and be looking at what the incoming data are telling you about the outlook, updating your estimates of what neutral might be, of what the natural rate of unemployment might be, of the state of the economy and letting that lead you to adjust your outlook and therefore your appropriate path for policy. So that's what we mean when we say we are data dependent. Of course, we are always data dependent but I think there's particular meeting in that context which is that.
--MNI Washington Bureau; +1 (973) 494-2611; email: [email protected]
