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Thursday, 28 February 2019 15:00

Fed's Powell says 'no rush' to hike rates

Fed's Powell says 'no rush' to hike rates

The Federal Reserve is in “no rush to make a judgment” about further changes to interest rates, Fed Chairman Jerome Powell told U.S. lawmakers as he spelled out the central bank’s approach to an economy that is likely slowing, Caspian Energy News (www.caspianenergy.net) reports with reference to Reuters.

In two hours of testimony to the Senate Banking Committee, Powell elaborated on the “conflicting signals” the Fed has tried to decipher in recent weeks, including disappointing data on retail sales and other aspects of the economy that contrast with steady hiring, wage growth, and ongoing low unemployment.

“The baseline outlook is a good one,” Powell said, but slower growth overseas is a drag on the U.S. economy that “we may feel more of” in the coming months.

 “We have the makings of a good outlook and our (rate-setting) committee is really monitoring the crosscurrents, the risks, and for now we are going to be patient with our policy and allow things to take time to clarify.”

If anything, Powell’s comments solidified a Fed policy shift last month in which it indicated it would pause a three-year cycle of rate hikes, which had been projected to run well into 2020, until the inflation or growth dynamics change.

The flow of new workers into the labor force, for example, has surprised the central bank and means “there is more room to grow,” Powell said.

More details: https://www.reuters.com/article/us-usa-fed-powell/feds-powell-says-no-rush-to-hike-rates-in-solid-but-slowing-economy-idUSKCN1QF1UB

Person in charge of the newsline: Olga Nagiyeva 

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