Chairman Powell in prepared remarks to Senate...>

FED: Chairman Powell in prepared remarks to Senate gave no clear new signals on

future policy or the balance sheet that markets may be looking for.

- Crosscurrents, uncertainties (Brexit, Europe, China, trade), and muted infl

justify the shift from data-dependent rate HIKES at the Dec FOMC to the

"patient" stance on rate CHANGES at the Jan FOMC.

- Noted they can "evaluate the appropriate timing and approach for the end of

the balance sheet runoff," but gave no other details.

- Repeated from the January FOMC statement that they see economic activity

expanding at a "solid pace" that is slower than the "strong pace" in 2018. 

- Recent energy price declines are transitory and outside those, inflation

should run close to 2%.

- Powell repeated that policy decisions will continue to be data-dependent.

- Effects from federal government shutdown seen "fairly modest", should unwind

over next several months.