MNI POLICY: Fed Chair Powell Repeats Patient, Watchful Stance

By Jean Yung

     WASHINGTON (MNI) - Federal Reserve Chair Jay Powell on Thursday reiterated

the Fed can be patient on interest rate moves and watch how risks play out in

the U.S. economy before responding. 

     The following are other key points from his talk at the Economic Club of

Washington, D.C.: 

     - He sees continued momentum in economic growth through the beginning of

the year, in contrast with financial market's concern over downside risks

stemming from a global growth slowdown and trade tensions. That calls for a risk

management-based and flexible approach, he said. "We have the ability to be

patient and watch patiently and carefully as we see the economy evolve."  

     - He sees inflation "right around 2%" this year and credits that in large

part to well anchored inflation expectations. 

     - The ultimate size of the Fed's balance sheet is unknown and depends on

the public's appetite for currency and bank reserves. It will be substantially

smaller than it is now but bigger than before the crisis, Powell said. 

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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