November 19, 2018 — Powell Speaks in Dallas; All FOMC Meetings “Live” for Rate Hikes

NOVEMBER 19, 2018 – POWELL SPEAKS IN DALLAS: ALL FOMC MEETINGS ‘LIVE’ FOR RATE HIKES

Fed Chair Jerome Powell was interviewed by Dallas Fed President Robert Kaplan in Dallas last week.  Powell said he was confident in the strength of the US economy, and the markets need to expect the central bank could raise rates at any meeting, starting in 2019. The era of quarterly spaced rate increases is, likely, over.

Powell is happy with the state of the economy right now, but conceded the global economy is slowing from last year’s pace and domestic growth can be expected to pull back a bit.  The FOMC policymakers have faith in US economic growth will hold strong going forward, which will lead to the continuation of a slow and steady increase in short-term interest rates for the foreseeable future.

Powell drew attention to the slowness in housing and the fiscal stimulus of tax cuts could wear off in 12 months, but maintains the Fed will do what it thinks best to sustain economic growth, keep inflation in check, unemployment low and ensure financial stability.

 

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