Despite an intensified economic outcry over the global market, the United States seemed to have little headaches, as Fed Chair Jerome Powell told on Friday, the 8th of March 2019, that the Federal Reserve had not been detecting problems in the United States’ economy, which would require an immediate attention, alongside alternation to its policy.
Besides, the Fed Chair also added that they would be careful not to distress the financial markets, as the bond portfolios had been stabilizing. Despite Fed Chair’s upbeat comment on Friday (March 8th), the US central bank had been closing in on a landmark milestone to unveil economic stimulus, which was endorsed to fight the age of financial crisis during 2007-2009.
In a wide-ranging speech at the Stanford University, Powell had also been quoted saying that there had been a lot going on including cross-currents in the financial data pointing towards economic risks ahead, although none of them were flashing enough for the Fed to alter its patient stance regarding interest rate.
Addressing a wait-and-see approach of Fed’s policy-setting Federal Open Market Committee, Powell said, “With nothing in the outlook demanding an immediate policy response and particularly given muted inflation pressures, the committee has adopted a patient, wait-and-see approach”.