FOMC: Policy is flexible – Danske Bank
|Morten Helt, senior analyst at Danske Bank, points out that on Friday, Federal Chairman Powell said that the FOMC’s policy is flexible and that officials are ‘listening carefully’ to financial markets.
Key Quotes
“Powell also said that the Fed will be patient as it observes how the economy evolves and referred to 2016 as an example where the FOMC indicated four hikes but only raised the target range once in December.”
“Powell’s comments came after FOMC members Kaplan (on Thursday) and Mester (earlier on Friday) said something similar and overall, the Fed is clearly indicating flexibility in its policy both in terms of the interest rate and quantitative tightening. The market expects the Fed to stay on hold in March.”
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