Earlier: Fed's Powell: Brexit vote has shifted global risk further to downside
Powell now in the Q&A
- Long-run rate may be lower than the 3% Fed dot plot
- Markets unusually responsive to shifts in policy path view
- We're a long way form having another financial crisis
- Financial conditions modestly tighter since Brexit vote
- Financial conditions have tightened since 2014 to equivalent of several rate hikes, particularly through appreciation of the dollar
More:
- Higher USD may translate into as much as a 0.25 point reduction in inflation rate, leaving Fed not that far from target
- economic strength is only way to achieve higher rates
- Little risk of deflation in the US as long as inflation expectations remain anchored