ECONOMY/FEDERAL RESERVE: “Federal Reserve Chairman Jerome Powell returned to Capitol Hill on Thursday [3-1-18] for a second day of testimony, with investors eager for more on whether his bullish view of the U.S. economy might translate into a more aggressive approach to raising interest rates this year and beyond.
Stocks and bonds sold off Tuesday after he told the House Financial Services Committee the Fed remains on track to gradually lift rates this year and hinted it might pick up the pace as the economy gains momentum.
Mr. Powell told the Senate Banking Committee on Thursday he didn’t see decisive evidence that steady declines in unemployment and less slack in the labor market had led to a breakout in wage gains, which could in turn fuel broader price pressures… Mr. Powell pointed to the fact that the share of working-age Americans who are employed or actively looking for jobs is still lower than it was before the financial crisis… Mr. Powell added the risks that inflation might rise or fall were much more balanced than they were two or three years ago, when there were more idle workers.”
-Nick Timiraos, “Powell Doesn’t See Signs of Economy Overheating,” The Wall Street Journal online, Mar. 1, 2018 11:04am