Fed's Powell sees 'no evidence' of overheating U.S. economy

Dollar Stronger on Powell's Hawkish Tone

Investors were also focused on the level of optimism Federal Reserve Chairman Jerome Powell expressed about economic growth: The stronger his optimism, the more likely the US central bank will become more aggressive in raising the benchmark lending rate to restrain inflation.

"There's no evidence that the USA economy may be overheating", Powell said during a Senate Banking Committee hearing.

The Fed holds its next interest-rate policy setting meeting later this month.

US stocks fell on Thursday, dragging the Dow Jones Industrial Average down for the year, after President Donald Trump announced substantial steel and aluminum tariffs.

That answer stood in contrast to remarks Tuesday before the House Financial Services Committee when Powell appeared to be signaling that the Fed could be on the verge of boosting its projections to show four rate hikes this year instead of three because of widespread signs that economic growth was strengthening.

In the previous session, shares saw early gains slide away, finishing up a losing month for stocks with a down day.

The chairman of the Federal Reserve Jerome Powell, who was sworn in as Janet Yellen's replacement in February, told the House Financial Services Committee on Tuesday that his outlook for the USA economy had strengthened since the Fed's policy meeting in December, bolstered by the tax overhaul and more stimulative fiscal policy. But on Thursday he sought to stress that the central bank has not seen any reason to alter its gradual approach to raising rates.

PM Modi, Quang discuss ways to enhance cooperation in defense, trade
The visit of the Vietnamese President is the second high-level visit from that country in little more than a month. He said the two sides will also look for trilateral partnership in oil and gas sector.

Alexa Loses Her Voice in Widespread Outage
Yahoo Finance reports that one of the ways being considered would allow Alexa to translate languages in a more sophisticated manner.

Larger Rise in Stockpiles Than Forecasts Weigh on Oil Prices
The accord ended a record global oil glut after more than two years of low crude prices that overstretched many state budgets. Geological Survey (USGS) said , prompting oil and gas companies to immediately suspend operations in the energy-rich interior.

After his comments highlighting the strengthening economy roiled financial markets on February 27 amid concerns the Federal Reserve would raise interest rates at a faster pace, Powell made it clear that gradual rate hikes would allow the economy to continue to expand.

There were fresh signs of strength in the labor market, with initial jobless claims unexpectedly falling to the lowest level in nearly 50 years, while the Fed's favorite inflation gauge held steady at 1.5%. "There is no evidence that the economy is now overheating". If anything, he's surprised wages haven't risen faster.

"I will be honest".

Powell also said he doesn't see a tightening labor market causing wages to hit "a point of acceleration". "We've got an economy with strong momentum". "And I do think you'll begin to see wage increases coming".

"Given the recent market turbulence that was initially driven in part by higher-than-expected wage growth figures in the last jobs report, this piece of data will take on particular importance", said James Chen, head of research at Forex.com in Bedminster, New Jersey. The Fed's preferred measure of inflation - the core personal consumption index - is at 1.5 per, below the central bank's target of 2 per cent. The US central bank in December pencilled in three 25-basis-point rate increases in 2018.

Fed officials have been patiently waiting for paychecks to grow.

Related news:

Hot News

isis-killer-beheading-video-story-top Wilfred Ndidi 'most consistent' Leicester City player - Claude Puel
Mar 04, 2018 - 04:39
It looked like a foul and referee Lee Probert looked long and hard but chose to allow play to continue. The Ghana worldwide was replaced by Ben Chilwell in the 20th minute of the game.

isis-killer-beheading-video-story-top Simultaneous Attacks Hit Burkina Faso, a Growing Target of Al Qaeda
Mar 04, 2018 - 04:37
Authorities say 133 people have been killed in 80 attacks, as the under-equipped security forces battle to assert themselves. The ministry condoled with families of the victims and wished the injured a speedy recovery.

isis-killer-beheading-video-story-top Coaches express confidence in VAR technology
Mar 04, 2018 - 04:36
Juan Mata's goal against Huddersfield Town, also in the FA Cup fifth round in front of the BT Sport cameras, was ruled out for offside.

isis-killer-beheading-video-story-top Theresa May sets out 'hard facts' of Brexit in future trade deal
Mar 04, 2018 - 04:36
She confirmed that United Kingdom standards would have to be at least as high as the EU's when it comes to goods regulations. Mr Barnier welcomed the speech for offering "clarity" on the UK's aims and a recognition that there would be "trade-offs".

isis-killer-beheading-video-story-top Malaysian developer's business deals with Ivanka Trump under Federal Bureau of Investigation scrutiny
Mar 03, 2018 - 06:39
The FBI is looking into one of Ivanka Trump's global business deals, two sources familiar with the matter told CNN on Thursday. White House spokesman Raj Shah declined to comment on Ivanka Trump's security clearance.

isis-killer-beheading-video-story-top Schools remain closed despite directive from state official
Mar 03, 2018 - 06:38
A number of teachers remain unhappy about the deal struck with Justice and have vowed to continue on strike, deal or not. The Martinsburg Republican says it will meet Friday and consider the state budget for next year and other bills.

isis-killer-beheading-video-story-top Tiger Woods to play in Valspar Championship in Palm Harbor next week
Mar 03, 2018 - 06:37
He was, however, widely expected to be at Bay Hill for the Arnold Palmer Invitational , where he is an eight-times victor . In addition to his four Masters titles, Woods has won the PGA Championship four times, the U.S.

isis-killer-beheading-video-story-top 2 killed in shooting at Central Michigan University dormitory
Mar 03, 2018 - 06:36
Davis, who is still at large as of Friday evening, is described as being 5 feet 10 inches tall, weighing about 135 pounds. Police said Davis had visited a local hospital Thursday night for what they believe was a drug-related issue.

isis-killer-beheading-video-story-top Statue of disgraced Harvey Weinstein unveiled in Los Angeles
Mar 03, 2018 - 06:36
The statue depicts Weinstein sitting on a couch while clad in a bathrobe, holding an Oscar in a suggestively phallic manner. Over 50 women have accused Weinstein of sexual harassment or assault, with accounts ranging from unwanted advances to rape.

isis-killer-beheading-video-story-top Kyla Jade sings 'See Saw' on The Voice 2018 Blind Audition
Mar 02, 2018 - 06:34
However, things took a turn when a country artist took the stage, and Blake Shelton was blocked from pursuing the contestant. The Voice has always been a positive show, but it's about to get a little dirty with the coaches and we're okay with that.

isis-killer-beheading-video-story-top MWC 2018: ZTE Blade V9, Tempo Go Android Go smartphone launched
Mar 02, 2018 - 06:01
There's also a 5-inch 854×480 display, 2,200 mAh battery, 5MP/2MP cameras, and GSM & CDMA compatibility. The Android Oreo-powered ZTE Tempo Go will be sold unlocked in the U.S. with support for GSM networks.

isis-killer-beheading-video-story-top All Aer Lingus and Ryanair flights cancelled until Saturday
Mar 02, 2018 - 05:27
To find out if your flight is running on time go to Skyscanner's arrival and departure board, which is updated in real time. Aer Lingus and Ryanair have announced that all flights in and out of Ireland after 3pm today are cancelled until Saturday.

isis-killer-beheading-video-story-top ICE won't confirm reported California arrests; says sanctuary cities 'not immune'
Mar 02, 2018 - 05:21
California became a sanctuary state January 1, barring police in most cases from asking people about their immigration status. It would be stronger if the mayor had released addresses of the raids or advocated for people to resist ICE, they said.

isis-killer-beheading-video-story-top Turkey lashes out at Czech court over Salih Muslim's release
Mar 02, 2018 - 05:00
Turkey-backed forces recently announced they had seized all positions along the Turkey-Syria border in Afrin. Ankara believes the armed group is responsible for a series of terrorist attacks in Turkey.

isis-killer-beheading-video-story-top Russian Federation claim the IOC has lifted their Olympic suspension
Mar 02, 2018 - 04:38
The IOC decision was slammed by the lawyer for Russian whistleblower and former Moscow drug lab director Grigory Rodchenkov. The Russian delegation had stockpiled uniforms with the Russian flag in preparation.