US Federal Reserve adopts a ‘wait-and-see’ approach to monetary policy
Chairman Jerome Powell says that while there are ‘cross-currents’ pointing to economic risks, none are serious enough for the central bank to change its interest rate stance
Palo Alto — The Federal Reserve does not see problems in the US economy that warrant an immediate change in its policy, and it will be careful not to shock financial markets as it stabilizes its bond portfolio, US Fed chairman Jerome Powell said on Friday. The US central bank is nearing a major milestone in its efforts to unwind economic stimulus measures enacted to fight the 2007-09 recession. In a wide-ranging speech at Stanford University, Powell said the Fed was "well along" in discussions on a plan to end a runoff of its balance sheet, which ballooned during and after the recession. While there were "cross-currents" pointing to economic risks, none were flashing warning signals serious enough for the Fed to change its interest rate policy stance, he said. "With nothing in the outlook demanding an immediate policy response and particularly given muted inflation pressures, the committee has adopted a patient, wait-and-see approach to considering any alteration in the stance of po...
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