Powell reaffirms Fed’s patience on monetary policy
Federal Reserve Board Chair Jerome Powell again professed patience on monetary policy Thursday night.
"The Federal Open Market Committee will be patient as we determine what future adjustments to the target range for the federal funds rate may be appropriate to support our dual-mandate objectives," Powell said in the keynote address at the Citizens Budget Commission 87th Annual Awards Dinner. “This common-sense risk-management approach has served the committee well in the past.”
The Fed chief accepted the group’s Medal for High Civic Service.
Noting the economy was approaching 10 straight years of growth, Powell repeated that it’s in “a good place,” despite slowing growth in China and Europe and the possible disruption caused by Brexit.
The majority of his speech focused on productivity and the labor force, where the prime age participation rate has been falling. Part of this can be attributed to younger people eschewing work for added education.
Noting that these are issues outside the Fed’s purview, so he would not suggest solutions, Powell said fixing these issues “could bring great benefits both to those workers and to our economy.”