Powell: The Growth Trend in the Economy Continues

Critical Statements from Powell

The Chairman of the Federal Reserve, Jerome Powell, made important assessments at the National Association for Business Economics (NABE) annual meeting. Powell emphasized that the economic data received before the government shutdown pointed to an upward trend in growth. Economists are expected to follow the positive repercussions of this news in the markets.

Monetary Policy and Economic Developments

In his statements regarding the future of monetary policy, Powell indicated that this trend would depend on data and risk assessments. Particularly highlighting the increasing downside risks in the labor market, Powell noted that this situation should be monitored closely. He mentioned that the economy was currently hovering near the levels seen in September according to the available data, stating that market fluctuations would be shaped based on these figures.

Fed's Information Sources

Powell also pointed out that the Federal Reserve does not rely solely on government data but has alternative information sources to support its policy decisions. This could enable the Fed to take a broader perspective in its future monetary policy actions.

Balance Sheet Reduction Process

Additionally, Powell announced that the balance sheet reduction process might be concluded in the upcoming months. This statement holds significant importance for market participants and analysts. The timing of the end of the balance sheet reduction process will depend on the overall economic outlook and labor dynamics.

Conclusion

Powell's statements will be closely monitored by investors and analysts. The upward growth signals in the economy are undoubtedly enhancing market stability and shaping expectations regarding the Fed's future actions.