MNI BRIEF: Powell Says Fed Not In Hurry To Ease Quickly
MNI (WASHINGTON) - Federal Reserve Chair Jerome Powell said Monday a strong economy means the central bank does not have to rush in reducing interest rates.
“This is not a committee that feels like it’s in a hurry to cut rate quickly,” Powell said during a Q&A hosted by the National Association of Business Economics. “From a base case standpoint, we’re looking at it as a process that will play out over some time, not something that we need to go fast on.
"If the economy performs as expected, that would mean two more cuts this year – 50 more (basis points),” he said.
Revisions to U.S. income data suggest consumers are better positioned to keep the economy humming than previously thought, Powell said.
“There were very large revisions to GDI. That removes a downside risk to the economy,” Powell said, although that doesn’t mean the Fed won’t stay on high alert for further job market cooling.
“There’s a lot of thinking that the labor market may give a better real time picture than does GDP data,” he said. (See: MNI INTERVIEW: Fed Can Cut Gradually If Jobs Stay Strong- Kohn )