Fed's Powell: No pre-set policy path; paying 'very close attention' to data

Eren Sengezer FXStreet

Below are some key takeaways from the speech delivered by the FOMC Chairman Jerome Powell at an Economic Club of New York luncheon.

Gradual rate hikes balance risks to forecast.
'Great deal to like about' U.S. Economic outlook.
Fed balancing risks of shortening expansion on one hand, higher inflation and instability on other.
Repeats sees 'moderate' overall vulnerabilities to financial stability.
Expects solid U.S. Growth, low unemployment, near-target inflation.
No pre-set policy path; paying 'very close attention' to data.
'Close' to price stability, maximum employment mandates.
Policy rate 'just below' estimates of neutral.
Concerned about leveraged corporate borrowing, which could exacerbate economic downturn.
Losses related to leveraged borrowing unlikely to imperil core financial firms, overall stability.
No dangerous excesses in stock market.
Fed working with U.S. Firms to prepare for full range of Brexit outcomes.
New financial stability report aims to boost democratic legitimacy of Fed.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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