Wednesday, 26 June 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Fed Chief Powell Says Economy Sending 'Conflicting Signals'
Tuesday, 26 February 2019 22:16 WIB | FISCAL & MONETARY |Federal Reserve

Federal Reserve Chairman Jerome Powell on Tuesday said the economy has been sending "conflicting signals" that justify a "patient approach" on future changes to interest rates.

œWhile we view current economic conditions as healthy and the economic outlook as favorable, over the past few months we have seen some crosscurrents and conflicting signals, Powell said in testimony prepared for delivery to the Senate Banking Committee.

The Fed chairman did not give a ringing endorsement of the economic outlook, saying only that in January œmy colleagues and I generally expected the economy to expand at a solid pace in 2019.

œIn the last couple of months, some data have softened but still point to spending gains this quarter, he noted.

At the Fed™s last interest-rate committee meeting, Powell and his colleagues decided they will be patient about further interest rate hikes. For economists, this generally means no tightening at least until much later this year.

The market has actually priced in a small chance of an interest-rate cut by December.

Minutes of the Fed™s January meeting show two camps among top officials, with some saying they expected to raise interest rates if the economy remains healthy and the outlook favorable, while others noting it would take some sign of higher inflation to justify further tightening.

Powell did not take sides, saying only that œgoing forward, our policy decisions will continue to be data dependent and will take into account new information as economic conditions.

Powell told lawmakers that the crosscurrents and conflicting signals come in large part from financial markets.

œFinancial markets became more volatile toward year-end, and financial conditions are now less supportive of growth than they were earlier last year, he said.

In addition, œgrowth has slowed in some major foreign economies, particularly China and Europe, the Fed chairman said.

œAnd uncertainty is elevated around several unresolved government policy issues, including Brexit and ongoing trade negotiations, he added.

œIn January, with inflation pressures muted, the FOMC determined that the cumulative effects of these developments, along with ongoing government policy uncertainty, warranted taking a patient approach with regard to future policy changes, the Fed chairman said.

Powell said that the partial government shutdown will only have œfairly modest negative effects on the economy.

Source : Marketwatch

RELATED NEWS
BOE Notes Rising No-Deal Brexit Risk as Rate Kept Unchanged...
Thursday, 20 June 2019 18:20 WIB

The Bank of England said the perceived risk of crashing out of the European Union without a deal had risen as they unanimously voted to keep policy unchanged. While officials, led by Governor Mark Ca...

BOJ Stands Pat as Fed and ECB Signal Possible Rate Cuts Ahead...
Thursday, 20 June 2019 10:19 WIB

The Bank of Japan kept monetary policy unchanged Thursday, just hours after the Federal Reserve became the latest central bank to signal a willingness to cut interest rates in the face of rising threa...

Fed holds rates steady, signals cuts possible later this year...
Thursday, 20 June 2019 01:40 WIB

The U.S. Federal Reserve held interest rates steady on Wednesday but signaled possible rate cuts of as much as half a percentage point over the remainder of this year, as it responded to increased eco...

BoE's Carney: BoE retains the ability to relaunch term funding scheme as necessary...
Tuesday, 18 June 2019 21:43 WIB

While speaking at the policy panel at the European Central Bank (ECB) Forum on Central Banking in Sintra, Portugal, Bank of England Governor Mark Carney said that in exceptional circumstances, like Br...

Draghi Says More Stimulus Needed If Outlook Doesn't Improve...
Tuesday, 18 June 2019 15:17 WIB

ECB President Mario Draghi says risk outlook œremains tilted to the downside, and more stimulus will be needed if the outlook doesn™t improve. Says interest-rate cuts and more QE are...

LATEST NEWS
Hong Kong Stocks Drop More Than One Percent (Review)

Hong Kong shares fell more than one percent Tuesday, hit by concerns over rising Iran-US tensions and as investors await this week's crucial trade talks between Donald Trump and Xi Jinping. The Hang Seng Index sank 1.15 percent, or 327.02 points,...

Nasdaq catat penurunan beruntun 3 hari pasca Powell menekankan sikap wait-and-see ' pada suku bunga

Saham AS merosot lebih rendah pada Selasa pasca Ketua Federal Reserve Jerome Powell mengatakan bank sentral masih memantau ekonomi untuk tanda-tanda kelemahan dan akan berusaha untuk menghindari reaksi spontan dalam hal pemotongan suku bunga...

U.S. oil prices pull back after 3-session climb on the back of Iran tensions

U.S. oil prices fell on Tuesday, posting a modest retreat after three consecutive session gains on the back of heightened tensions between the U.S. and Iran. August West Texas Intermediate crude fell 7 cents, or 0.1%, to settle at $57.83 a barrel...

POPULAR NEWS
You Can't Be Anything But Bullish On Gold After $1,400 Breaks – Analysts
Monday, 24 June 2019 15:44 WIB

Patience has finally paid off for the gold bull, as demand for the precious metal has pushed prices to levels not seen in nearly six...

Gold notches a third straight session gain, its second above $1,400
Tuesday, 25 June 2019 01:25 WIB

Gold futures climbed sharply on Monday, extending their streak of gains to a third consecutive session. Weakness in the U.S. dollar and 10-year...

Gold Prices Up as U.S.-Iran Conflict Fuels Safe-Haven Demand, Trades Above $1,400
Monday, 24 June 2019 12:57 WIB

Gold prices rose on Monday in Asia and traded above the key $1,400 level amid intensifying conflicts between the U.S. and Iran. Gold futures for...

Gold Continues Rally, Pushing Further Past $1,400
Monday, 24 June 2019 18:59 WIB

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from the...