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FED: Chair Powell Asked on Mortgage/Credit Card/Auto Loan Rates

FED
USEM BulletFederal ReserveCentral Bank NewsEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange BulletsNorth America

Asked about failure of mortgage/credit card/auto loan rates to fall despite rate cuts:

  • Powell says that longer run rates are affected to some extent by Fed policy, but they're also affected by many other things, and longer rates have actually gone up quite a bit since September. We look at all financial conditions, and then we look at what's happening in the economy. The US economy is just performing very, very well, substantially better than our global peer group. And I there's no reason to think a downturn is is any more likely than it usually is. So the outlook is pretty bright for our economy. We're pretty close to estimates of the natural rate of unemployment. Job creation is a little below the level that would keep it there, but nonetheless close.
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Asked about failure of mortgage/credit card/auto loan rates to fall despite rate cuts:

  • Powell says that longer run rates are affected to some extent by Fed policy, but they're also affected by many other things, and longer rates have actually gone up quite a bit since September. We look at all financial conditions, and then we look at what's happening in the economy. The US economy is just performing very, very well, substantially better than our global peer group. And I there's no reason to think a downturn is is any more likely than it usually is. So the outlook is pretty bright for our economy. We're pretty close to estimates of the natural rate of unemployment. Job creation is a little below the level that would keep it there, but nonetheless close.