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It's JPOW time.
Powell:
"We have seen that the longer-run potential growth rate of the economy is lower than it once was."
"The neutral rate is also much lower than before."
"Our policy rate will be constrained more often by the effective lower bound."
"We have seen that the longer-run potential growth rate of the economy is lower than it once was."
"The neutral rate is also much lower than before."
"Our policy rate will be constrained more often by the effective lower bound."
Powell stares straight into the camera and declares:
“We will not tighten monetary policy solely as the result of a strong labor market.”
“We will not tighten monetary policy solely as the result of a strong labor market.”
Powell notably uses the modifier "troubling" when saying what kind of inflation it would take to change course and start to tighten.
In case there was any doubt that it would be a subjective read of the situation.
In case there was any doubt that it would be a subjective read of the situation.
Powell says the Fed does not want to replace Dr. Fauci.
Powell:
"Nobody elected us. It’s very important that we stick to our assignment from Congress... The tools you describe really are tools of fiscal policy. We do not seek them."
"Nobody elected us. It’s very important that we stick to our assignment from Congress... The tools you describe really are tools of fiscal policy. We do not seek them."
