Powell says Fed can be patient as U.S. economy evolves in 2019

WASHINGTON (Reuters) – Federal Reserve Chairman Jerome Powell said on Thursday the U.S. central bank has the ability to be patient on monetary policy given stable price measures, and he downplayed predictions from policymakers suggesting interest rates would be raised twice more this year.

“Especially with inflation low and under control we have the ability to be patient and watch patiently and carefully as we … figure out which of these two narratives is going to be the story of 2019,” he said of good momentum in economic data and, on the other hand, concerns in financial markets over risks.

“There is no such plan,” Powell added when asked at the Economic Club of Washington about December forecasts from Fed policymakers showing they expect a median of two more rate hikes in 2019, after four last year. “That was conditional on a very strong outlook for 2019, an outlook that may still happen,” he added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.