Fed President Powell said: "The economy has healthy but contradictory signals"
Fed President Jerome Powell's monetary policy presentation to the US Senate Banking Committee was published.
"The economy is sending out contradictory signals that will legitimize the patient approach in the rate hike. We see the current economic conditions as healthy, the economic outlook is good, but we have seen some mixed signals in the last few months," Powell said.
In 2019, Powell predicted that GDP growth will be stronger than 2018, though stronger. "We are ready to adjust the balance sheet if necessary."
Powell said the labor market is strong and inflation is close to 2 percent. The statement "financial markets have become more volatile at the end of the year, and financial runs are less supportive of growth than at the beginning of last year. In addition, growth in some major foreign economies has slowed down, especially in Europe and China. there is uncertainty. " The negative effects of the government's closure in the economy would be only 'moderate', Powell said.
Powell in the question and answer section said,. In the long term, the size of the balance sheet will be determined by the demand for the Fed's obligations, such as foreign exchange and bank reserves. the case said.
"We do not find the rising wages to be uncomfortable for inflation, we feel the pressure of weak inflation, this supports the patience, we think carefully about the framework of the inflation targets. Now it's a good time to be patient, watch and wait. Uncertainty is an extremely important enemy of business life, for certainty in trade and other policies," he said.
"The federal government is in an unsustainable financial path," commented Powell.
Fed President Powell refused to answer a question of former Fed chairman Yellen's criticism of US President Donald Trump.
At the latest interest meeting, the authorities announced that they would be hired on future interest rate increases.
