Fed's Powell: Fed will respond accordingly

Federal Reserve Chair Powell is speaking on “Building on the Gains from the Long Expansion”.

Key comments

• Powell says fed would 'respond accordingly' if developments cause material reassessment of economic outlook.
• Fed's Powell says current monetary policy likely to remain appropriate as long as economic data is consistent with moderate growth.
• Powell says 'yellow flags' in economy include muted inflation and weakness in manufacturing.
• Powell says policymakers' favorable outlook for u.s. economy is founded in strong household spending.
• Powell says weak foreign growth hurts exports and increases risk that weakness will spread more broadly.
• Powell says lower monthly job gains point to an economy with 'somewhat less momentum' than previously thought.
• Powell says monetary policy 'well positioned' to support labor market and 2% inflation goal.
   

FX implications

This is familiar commentary from Federal Reserve's Chairman Powell and has little impact on markets - The Fed is on hold.