No recession in 2019: Fed chairman

No recession in 2019: Fed chairman

No recession in 2019: Fed chairman

During an interview at The Economic Club of Washington, D.C., Powell said that continued shutdown stopped some of the data feed that the Fed needed, making the outlook of USA economy less clear, thus complicating policy-making. He said he didn't know the exact level.

"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", Powell said 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 a year ago. In contrast, his remarks in his three previous appearances since late November moved stocks an average of 2.4 percent in either direction, and his comments last Friday spurred the largest market reaction yet to any of his 17 public appearances since taking office last February.

The US government has been partially shuttered since late December as President Donald Trump has refused to sign a budget agreement unless Congress agrees to allocate more than $5 billion for a border wall.

Since the meeting, Fed officials have indicated they're less inclined to keep raising than their statement and projections for hikes in 2019 had suggested.

The more flexible approach, apparent in the minutes and in recent speeches, has supported stock prices.

He acknowledged lower growth expectations globally, and tighter financial conditions over the last few months.

"It will be substantially smaller than it is now", Powell said Thursday at the Economic Club of Washington, adding that the balance sheet needs to be at a "more normal level" without clarifying what that level was. "The principal worry is global growth", he said.

The Fed chief was also asked about the partial US government shutdown.

"I'm not aware of any Fed chair turning down an invitation from the White House, nor do I think that would be appropriate", Powell said.

This turn is likely to have as an interesting side effect that you should relax the relationship of the Fed to the White house. Those forecasts appear supported by a robust December labor-market report, which showed the economy added 312,000 non-farm jobs, the most in 10 months.

The us Central Bank, the Federal Reserve has pressed the pause button. "The US Chamber of Commerce, which represents millions of businesses, projects low unemployment, modest inflation and 2.6 per cent growth for 2019". Financial markets are incorporating a variety of risks to the outlook, ranging from slowing global growth to the potential for a protracted trade war with China.

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