NatWest hd strategy/Amer John Briggs said...>

US VIEW: NatWest hd strategy/Amer John Briggs said Fed Chr nominee Powell at

nominee hearing said bal. sheet runoff "likely to run 3-4 yrs to $2.5tn," that

"4.1% unemployment rate is at or below natural estimates, though maximum

employment is imprecise. They also look at wages and the participation rate,

where there may still be prime age male slack and wages are not signaling

tightness in the labor market."

- Briggs said Powell noted "no sense" of econ overheating, later said Fed has

been "patient in removing accommodation and that served them well, but now with

the economy strong it is time to normalize rates. On December, he said the case

for raising rates "is coming together." On regulation, his comments were

generally favorable to examining the last 8 yrs of regulation and looking for

appropriate ways to ease the burden, especially on smaller community bks. He

said the Fed is watching carefully to see if weak inflation is transitory."

- Natixis' Joseph LaVorgna:Powell "said a low prime-age male (workforce)

participation force rate could signal economic slack and thus little inflation

pressure."