Remarks from the Fed's Powell
- Says Brexit vote has shifted global risks "further to the downside," with potential new headwinds for the US and other countries
- Says Fed ready to act if funding pressures mount, though markets so far functioning in an orderly manner
- Too early to judge effects of brexit, important for fed to assess policy implications so that US continues progress on jobs, inflation goals
- Says global economic and financial conditions particularly important for US at this time
- Possible loss of momentum in labor market is "worrisome"
- Watching inflation expectations closely, essential they remain anchored for Fed to reach 2 percent target
- His baseline expectation is US economic growth of around 2 percent, ongoing job creation and move of inflation to target
- Says fallout from financial crisis may have lowered both US growth and long-run potential
via Reuters
This is careful stuff from Powell. No indications from these comments that he is in any hurry whatsoever to see rate hike.