Federal Reserve Chairman Jerome Powell heads to Capitol Hill on Tuesday at a touchy juncture.
"Generally, he'll want to stick to the script," said Mark Zandi, chief economist at Moody's Analytics. "He may highlight the potential threat from the coronavirus as an issue. He'll probably continue to remain on the dovish side."In 2019, the Fed made a substantial policy shift, going from a stance of steadily raising rates and reducing its bond holdings to easing through rate cuts and, ultimately, rebuilding its balance sheet.
That question could revolve on how well the Fed does in meeting its goal to bring up inflation to what it considers a healthy level.Markets expect that at some point this year, the Fed will announce it is changing its approach to inflation, from looking specifically for a 2% level to instead an average of 2% that will provide more flexibility should it overshoot.
Fed officials see 2% as a healthy level in a growing economy and one that allows enough room interest rates to be able to cut in case of an economic downturn. At the January meeting, the committee tweaked its policy statement to emphasize its desire to get "to" 2% rather than near it.Powell has praised the strength of the U.S. economy, but has emphasized the danger that slowing global growth presents.at least for the first quarter.
Fed officials to date have not changed their forecasts, instead focusing on the domestic economy's strength.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'SNL': Pete Davidson Undergoes Drag Make-Over With RuPaulDavidson's hilariously stupid 'Chad' meets RuPaul and gets a whole new look.
Read more »
This Jambalaya Is a Spicy-Food Lover's DreamMeet Carrie Pacini, our Readers' Choice Week winner for your best spicy recipe.
Read more »
Brandon Maxwell Delivers Elegance and Expert Tailoring for Fall 2020See all of ELLE.com's favorite looks from your favorite designers at New York Fashion Week.
Read more »
Academy Museum Opening Date Unveiled During OscarsTom Hanks took the stage at the 92nd Oscars on Sunday and said the Academy of Motion Picture Arts and Sciences’ Academy Museum of Motion Pictures will open Monday, December 14, 2020. Hanks is…
Read more »
The Tory Burch New York Fashion Week Fall 2020 Show BackstageSee all the first looks before they hit Tory Burch's New York Fashion Week runway on Sunday morning.
Read more »
16 Times Kylie Jenner Stole the Show During Fashion WeekKylie Jenner has made several appearances at fashion week shows over the years. Take a look back at all of her runway moments!
Read more »