Fed not moving off sidelines unless inflation heats up and stays there, Powell emphasizes

Fed Chairman Jerome Powell said the Fed would like to see a move in inflation that is significant and persistent before it raises interest rates again.

"They want to be viewed as being in neutral. And in fact, he made it clear he thinks they're probably not really in neutral. They're still accomodative," said Ward McCarthy, chief financial economist at Jefferies. "The take away from that is the probability they're going to make any changes in policy for at least six months is very low, and it would take something quite significant for that to happen.

While markets are laser focused on the Dec. 15 deadline, Powell said the Fed can't respond to trade headlines. "We look at a range of factors. We try to look through the volatility in trade news," he said, adding Fed officials do not set monetary policy based on the trade developments. He said the market had been worried about the potential for a hard Brexit for the U.K., but it does not seem that will be the outcome after the U.K. election this Thursday. The other fear, of course, had been that trade wars would hamper global growth and create a worldwide recession.

"They'd like inflation to go higher. We had a multi-generational strong labor market. We have all-time record highs in equities and we don't have accelerating inflation. Of course they'd like inflation to be slightly higher. The economy is in pretty good shape," said Hill.

Source: Loan Digest (loandigest.net)

philadelphiafed says the number of U.S. states headed towards recession is nine (9), a level that reliably foreshadows past recessions 👇🏼 WestVirginia Pennsylvania Delaware Montana Oklahoma Vermont NewJersey Kentucky Connecticut

This is the fundamental of US economy.

Speculative markets wax and wane. Money is hidden and reemerges. But the fundamentals of the American economy are strong on the foundation of America's incredible work ethic, and have been strong since F.D.R. revived us from The Great Depression and gave us Social Security etc.

A period of stability until economy heats up again in 2020. Then, rates will start to rise again.

So fed was on the sidelines up til now? What a bunch of crap.

What Trump wants a Trump gets , keep pumping up the bubble with more debt. ...... because you are clueless to the devastating effect it will have Jerome Powell is without doubt corrupt and run by the banks

trumps mule!

EndTheFed

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