Thursday, 23 May 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
Fed minutes: Voters say patient stance can last 'for some time'...
Thursday, 23 May 2019 01:16 WIB

Anggota pemungutan suara dari Komite Pasar Terbuka Federal (FOMC) tampak nyaman dengan sikap sabar mereka pada suku bunga, setuju bisa bertahan untuk "beberapa waktu," menurut risalah pertemuan tangga...

RBA Slashes Near-Term Growth Outlook as Employment Key to Rates...
Friday, 10 May 2019 08:57 WIB

Bank sentral Australia memangkas prospek pertumbuhan jangka pendeknya dan mengandalkan kekuatan pasar pekerjaan yang kuat untuk meredam penurunan yang didorong oleh sektor properti dalam pengeluaran r...

Reserve Bank of Australia Keeps Rates on Hold, Aussie Spikes to 0.7045...
Tuesday, 7 May 2019 11:54 WIB

Reserve Bank of Australia (RBA) mempertahankan rekor tingkat kas (OCR) rendah dan mempertahankannya pada rekor serendah 1,50 persen untuk 13 pertemuan berturut-turut, sangat mengecewakan para elang. ...

Bank of England leaves policy rate unchanged at 0.75% with unanimous vote as expected...
Thursday, 2 May 2019 18:26 WIB

Dalam keputusan yang diharapkan secara luas, Komite Kebijakan Moneter Bank of England mempertahankan tingkat kebijakan tidak berubah pada 0,75% dengan suara bulat. Fasilitas pembelian aset tetap stabi...

Fed Holds Interest Rates Steady as Economy Grows at 'Solid Rate' and Inflation Stays Low...
Thursday, 2 May 2019 06:44 WIB

Federal Reserve pada hari Rabu tidak mengubah suku bunga utama AS yang memengaruhi biaya pinjaman untuk hipotek dan segala jenis pinjaman konsumen dan bisnis, mencatat penurunan inflasi baru-baru ini ...

LATEST NEWS
U.S. Stock Futures Drop as China Trade Spat Continues to Unsettle Investors

Stock futures fell sharply on Thursday, amid investor concern that trade tensions between the U.S. and China could get much worse before they improve. Dow Jones Industrial Average futures fell 158 points, or 0.6%, to 25,615, while S&P 500...

Hong Kong Stocks Finish With Steep Losses

Shares tumbled in Hong Kong and Shanghai on Thursday as traders fret about growing tensions between China and the US, with tech and energy firms among the worst performers. The Hang Seng Index dived 1.58 percent, or 438.81 points, to...

Pound Slides as May Is Pushed Toward the Exit

The dollar was higher across the board in early trade in Europe Wednesday, as the reportedly imminent exit of British Prime Minister Theresa May over the Brexit shambles depressed the pound and made for an awkward backdrop to European parliament...

POPULAR NEWS
Gold posts a modest rise after ending last week at a 2-week low
Tuesday, 21 May 2019 01:18 WIB

Gold prices finished Monday with a modest gain after settling at a two-week low in the previous session, with the dollar showing some weakness and...

Gold Ends at Nearly 3-Week Low as Dollar, Stocks Perk Up
Wednesday, 22 May 2019 01:36 WIB

Gold futures ended lower Tuesday as global stocks staged a rebound and the dollar strengthened a bit, dulling bullion's appeal and sending prices to...

Gold Claws Up From Two-Week Lows as Dollar, Stocks Point Lower
Monday, 20 May 2019 18:49 WIB

Gold futures prices inched up from the two-week lows hit to wrap up last week, with both the dollar and stocks pointing lower Monday. A narrow...

Gold Ends Modestly Higher, Edges Up Further in Electronic Trade after Fed Minutes
Thursday, 23 May 2019 01:18 WIB

Gold prices posted a modest gain on Wednesday, recouping a portion of the loss from a day earlier as U.S. benchmark stock indexes moved...