Powell takes questions after the FOMC decision:
- We think the outlook if favorable, in general
- We think crosscurrents are going to be with us for awhile
- I'm please with progress in balance sheet discussions, won't give equilibrium size, we're not at that point yet
- Doesn't want to prejudge talks on balance sheet composition
- Incoming data has showed more slowing in global growth
- Shutdown impacts could weigh. We'll see what happens next
- Also mentions 'financial conditions' which is the code word for the stock market falling
- Tough to say whether this is the end of the hiking cycle at this point
- Says didn't cave to Trump, only care is doing our job for Americans
- We would feel a hard Brexit but it wouldn't be a huge first-order effect unless there was financial turmoil
Powell is hammering home that the Fed is on the sidelines. No hiking bias, no cutting bias. The expectation was that they would keep some level of a hiking bias but he's staying away from it.
The stock market hit fresh highs after Powell said it was tough to say whether this was the end of the hiking cycle.
