FIRST AIRED: March 20, 2019

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it looks like for a reserve chairman Jerome Powell stunning policy turnaround is now complete afternoon everyone and welcome he's led a group of policy makers once intent on gradually raising interest rates into full long pause mode in less than three months the US economy is in a good place and we will continue to use our monetary policy tools to help keep it there but citing quota growth of economic activity has slowed from its solid rate in the fourth quarter the federal reserve Wednesday not only held its key lending rate at two and a quarter to two and a half percent it wiped out any chance of a rate hike this year a stark reversal from the feds earlier prediction of at least two increases in two thousand nineteen Powell pointed to conflicting economic signals for the fed's decision to stop raising rates the data that we're seeing are not currently sending out a signal which suggests moving in in either direction for me which is really why were for being patient we feel our our our policy rate is in the range of neutral the economy is growing at about trend inflation's close to target and implements under three percent it's a great time for us to be patient and watch and wait and see how things evolve investors betting on a softer gentler approach from the federal reserve at first welcomed the news but weak financial stocks like Dow components Goldman Sachs JP Morgan chase and American Express dragged the market lower the bank's hurt without the promise of higher interest rates some on Wall Street or even started to think a rate cut could be the fed's next move Powell wouldn't go that far Wednesday's press conference but he is keeping an eye on the global economy specifically a slow down in China and Europe and possible blowback from Bridget for signs how long the fates new rate Paul strategy will last