Fed's Powell: Monetary policy well positioned to support strong labour market

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Monetary policy is 'well positioned' to support the strong labor market, which is just now starting to benefit workers on the margins, Federal ...

PROVIDENCE, Rhode Island: Monetary policy is"well positioned" to support the strong labour market, which is just now starting to benefit workers on the margins, Federal Reserve Chair Jerome Powell said Monday .

Powell said adjustments to employment data suggested the labour market may not have been as strong last year as previously thought, a shift that supported the case for lower rates. "While this news did not dramatically alter our outlook, it pointed to an economy with somewhat less momentum than we had thought," Powell said.Low inflation data prompted Fed officials to lower their estimates for the neutral interest rate that would not stimulate the economy, Powell said.

The Fed chair said officials have a favorable outlook for the US economy founded on strong consumer spending, which is bolstered by a robust job market, increasing incomes and solid consumer confidence.

 

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