Logical Analysis Report

Key Focus

But walk me through your thinking in assessing the situation in China now in terms of the economics and that potential spillover effect.
Jerome Powell: (24:42)
I'll just quickly start by saying again that we find the US economy in a very good place performing well. We see signs of global growth bottoming out, we see reduced trade policy uncertainty.
I recall, over the years, that the Atlanta Fed has applied its expertise to report on the economy of the space district.
Mr. Posey: (50:42)
First question, can you work with me to ensure that The Federal Reserve joins this multi-agency effort with an eye to avoiding financial bottlenecks and keeping this important space industry on path to a healthy growth rate.
Jerome Powell: (50:56)
It's the first I'm hearing about it, but I will surely, I'm happy to assure you that we'll take a close look at that, and if it's something that would be productive, we'd take part.
Mr. Over the years, we've developed a rather expansive policy of Federal Reserve independence, and I believe in assuring the freedom of The Fed to act independently on a day-to-day basis to manage our economy and the critical payment system
President just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome Powell: (01:36:26)
We don't give advice on trade policy, but I would just say this, that I think the signing and the enactment of and implementation of USMCA will be a positive, at least in the sense that it removes uncertainty around trade policy

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High Level Topics

ECONOMY

POLICY

FED

CAPITAL

BANKS

MONETARY

GROWTH

FEDERAL_RESERVE

High Level Abstractions

ECONOMY(33, 1th Order)

( ECONOMY )(33, 1th Order) top

( ECONOMY, POLICY )(7, 2st Order) top

( ECONOMY, POLICY, TRADE )(2, 3nd Order) top

( ECONOMY, POLICY, GROWTH )(3, 3nd Order) top

( ECONOMY, POLICY, USMCA )(1, 3nd Order) top

( ECONOMY, POLICY, MONETARY )(2, 3nd Order) top

( ECONOMY, POLICY, LAG )(2, 3nd Order) top

( ECONOMY, POLICY, FED )(1, 3nd Order) top

( ECONOMY, POLICY, EMPLOYMENT )(1, 3nd Order) top

( ECONOMY, POLICY, ECONOMIC )(2, 3nd Order) top

( ECONOMY, POLICY, WAGE )(1, 3nd Order) top

( ECONOMY, POLICY, UNEMPLOYMENT )(1, 3nd Order) top

( ECONOMY, POLICY, THE_FEDERAL_RESERVE )(1, 3nd Order) top

( ECONOMY, GROWTH )(5, 2st Order) top

( ECONOMY, GROWTH, TRADE )(2, 3nd Order) top

( ECONOMY, GROWTH, USMCA )(1, 3nd Order) top

( ECONOMY, GROWTH, GLOBAL )(2, 3nd Order) top

( ECONOMY, GROWTH, ECONOMIC )(1, 3nd Order) top

( ECONOMY, GROWTH, WORKFORCE )(1, 3nd Order) top

( ECONOMY, GROWTH, WAGE )(1, 3nd Order) top

( ECONOMY, GROWTH, THE_FEDERAL_RESERVE )(1, 3nd Order) top

( ECONOMY, GROWTH, THE_FED )(1, 3nd Order) top

( ECONOMY, GROWTH, SPACE_ECONOMY_SATELLITE_ACCOUNT )(1, 3nd Order) top

( ECONOMY, GROWTH, RECALL )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE )(6, 2st Order) top

( ECONOMY, FEDERAL_RESERVE, RISKS )(2, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, GOVERNOR )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, FED )(2, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, BANKS )(2, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, WEATHER )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, THE_FEDERAL_RESERVE )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, THE_FED )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, SUPERVISORY )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, SUNTRUST )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, SPILLOVER )(1, 3nd Order) top

( ECONOMY, FEDERAL_RESERVE, SPEECH )(1, 3nd Order) top

( ECONOMY, ECONOMIC )(5, 2st Order) top

( ECONOMY, ECONOMIC, USMCA )(1, 3nd Order) top

( ECONOMY, ECONOMIC, TRADE )(1, 3nd Order) top

( ECONOMY, ECONOMIC, GOVERNOR )(1, 3nd Order) top

( ECONOMY, ECONOMIC, EXPANSION )(2, 3nd Order) top

( ECONOMY, ECONOMIC, CHINA )(2, 3nd Order) top

( ECONOMY, ECONOMIC, WEATHER )(1, 3nd Order) top

( ECONOMY, ECONOMIC, WAGE )(1, 3nd Order) top

( ECONOMY, ECONOMIC, UNITED_STATES )(1, 3nd Order) top

( ECONOMY, ECONOMIC, SUPERVISORY )(1, 3nd Order) top

( ECONOMY, ECONOMIC, SPEECH )(1, 3nd Order) top

( ECONOMY, FED )(5, 2st Order) top

( ECONOMY, FED, EMPLOYMENT )(2, 3nd Order) top

( ECONOMY, FED, SUPERVISORY )(2, 3nd Order) top

( ECONOMY, FED, GOVERNOR )(1, 3nd Order) top

( ECONOMY, FED, CRISIS )(2, 3nd Order) top

( ECONOMY, FED, WEATHER )(1, 3nd Order) top

( ECONOMY, FED, UNEMPLOYMENT )(1, 3nd Order) top

( ECONOMY, FED, SPEECH )(1, 3nd Order) top

( ECONOMY, FED, SOLVENCY )(1, 3nd Order) top

( ECONOMY, FED, SIR )(1, 3nd Order) top

( ECONOMY, FED, SAN_FRANCISCO_FED )(1, 3nd Order) top

( ECONOMY, CAPITAL )(3, 2st Order) top

( ECONOMY, INTEREST )(3, 2st Order) top

( ECONOMY, GLOBAL )(4, 2st Order) top

( ECONOMY, CHINA )(3, 2st Order) top

( ECONOMY, BANKS )(4, 2st Order) top

( ECONOMY, WAGE )(2, 2st Order) top

( ECONOMY, RISKS )(4, 2st Order) top

POLICY(27, 1th Order)

( POLICY )(27, 1th Order) top

( POLICY, MONETARY )(13, 2st Order) top

( POLICY, MONETARY, ECONOMIC )(4, 3nd Order) top

( POLICY, MONETARY, CONGRESS )(1, 3nd Order) top

( POLICY, MONETARY, EMPLOYMENT )(3, 3nd Order) top

( POLICY, MONETARY, WAGE )(1, 3nd Order) top

( POLICY, MONETARY, POLICIES )(2, 3nd Order) top

( POLICY, MONETARY, OUTLOOK )(1, 3nd Order) top

( POLICY, MONETARY, LABOR )(1, 3nd Order) top

( POLICY, MONETARY, INTEREST )(1, 3nd Order) top

( POLICY, MONETARY, INDIVIDUALS )(2, 3nd Order) top

( POLICY, MONETARY, GROWTH )(1, 3nd Order) top

( POLICY, GROWTH )(4, 2st Order) top

( POLICY, CONGRESS )(3, 2st Order) top

( POLICY, ECONOMIC )(5, 2st Order) top

( POLICY, ECONOMIC, TRADE )(2, 3nd Order) top

( POLICY, ECONOMIC, REGULATORY )(1, 3nd Order) top

( POLICY, ECONOMIC, GROWTH )(2, 3nd Order) top

( POLICY, ECONOMIC, USMCA )(1, 3nd Order) top

( POLICY, ECONOMIC, POLICIES )(2, 3nd Order) top

( POLICY, ECONOMIC, LABOR )(1, 3nd Order) top

( POLICY, ECONOMIC, EXPANSION )(1, 3nd Order) top

( POLICY, ECONOMIC, WORKFORCE )(1, 3nd Order) top

( POLICY, ECONOMIC, WAGE )(1, 3nd Order) top

( POLICY, ECONOMIC, THE_FOMC )(1, 3nd Order) top

( POLICY, TRADE )(4, 2st Order) top

( POLICY, INTEREST )(3, 2st Order) top

( POLICY, GLOBAL )(3, 2st Order) top

( POLICY, REGULATORY )(2, 2st Order) top

( POLICY, FEDERAL )(3, 2st Order) top

( POLICY, EMPLOYMENT )(3, 2st Order) top

( POLICY, WAGE )(2, 2st Order) top

FED(28, 1th Order)

( FED )(28, 1th Order) top

( FED, WAGE )(4, 2st Order) top

( FED, FEDERAL_RESERVE )(6, 2st Order) top

( FED, FEDERAL_RESERVE, CRA )(2, 3nd Order) top

( FED, FEDERAL_RESERVE, WAGE )(1, 3nd Order) top

( FED, FEDERAL_RESERVE, SPEECH )(2, 3nd Order) top

( FED, FEDERAL_RESERVE, GROWTH )(1, 3nd Order) top

( FED, FEDERAL_RESERVE, GOVERNOR )(1, 3nd Order) top

( FED, FEDERAL_RESERVE, EMPLOYMENT )(2, 3nd Order) top

( FED, FEDERAL_RESERVE, WEATHER )(1, 3nd Order) top

( FED, FEDERAL_RESERVE, SUPERVISORY )(1, 3nd Order) top

( FED, FEDERAL_RESERVE, SOLVENCY )(1, 3nd Order) top

( FED, FEDERAL_RESERVE, SIR )(1, 3nd Order) top

( FED, UNEMPLOYMENT )(4, 2st Order) top

( FED, RISKS )(3, 2st Order) top

( FED, EMPLOYMENT )(4, 2st Order) top

( FED, INTEREST )(3, 2st Order) top

( FED, INFLATION )(4, 2st Order) top

( FED, GROWTH )(2, 2st Order) top

( FED, INFLUENCE )(2, 2st Order) top

( FED, GOVERNMENTS )(2, 2st Order) top

( FED, CRISIS )(3, 2st Order) top

CAPITAL(16, 1th Order)

( CAPITAL )(16, 1th Order) top

( CAPITAL, BANKS )(4, 2st Order) top

( CAPITAL, REGULATORY )(2, 2st Order) top

( CAPITAL, CRISIS )(3, 2st Order) top

( CAPITAL, RISK )(2, 2st Order) top

( CAPITAL, LIQUIDITY )(3, 2st Order) top

( CAPITAL, INSURANCE )(2, 2st Order) top

( CAPITAL, FSOC )(2, 2st Order) top

( CAPITAL, FEDERAL_RESERVE )(1, 2st Order) top

( CAPITAL, SUPERVISORY )(1, 2st Order) top

( CAPITAL, SHAREHOLDERS )(1, 2st Order) top

( CAPITAL, MISALLOCATION )(1, 2st Order) top

( CAPITAL, COLLEAGUES )(2, 2st Order) top

BANKS(23, 1th Order)

( BANKS )(23, 1th Order) top

( BANKS, POLICY )(1, 2st Order) top

( BANKS, KEEP )(4, 2st Order) top

( BANKS, INTEREST )(2, 2st Order) top

( BANKS, RISKS )(4, 2st Order) top

( BANKS, FEDERAL_RESERVE )(3, 2st Order) top

( BANKS, FED )(1, 2st Order) top

( BANKS, VOLCKER_RULE )(1, 2st Order) top

( BANKS, CRISIS )(3, 2st Order) top

( BANKS, THE_FED )(2, 2st Order) top

( BANKS, REGULATORS )(1, 2st Order) top

MONETARY(16, 1th Order)

( MONETARY )(16, 1th Order) top

( MONETARY, CONGRESS )(2, 2st Order) top

( MONETARY, EMPLOYMENT )(4, 2st Order) top

( MONETARY, ECONOMY )(1, 2st Order) top

( MONETARY, ECONOMIC )(4, 2st Order) top

( MONETARY, INTEREST )(2, 2st Order) top

( MONETARY, GOVERNMENTS )(2, 2st Order) top

( MONETARY, GAO )(1, 2st Order) top

( MONETARY, FED )(1, 2st Order) top

( MONETARY, WAGE )(1, 2st Order) top

( MONETARY, POLITICAL )(1, 2st Order) top

( MONETARY, POLICIES )(2, 2st Order) top

GROWTH(13, 1th Order)

( GROWTH )(13, 1th Order) top

( GROWTH, WAGE )(4, 2st Order) top

( GROWTH, TRADE )(3, 2st Order) top

( GROWTH, ECONOMIC )(3, 2st Order) top

( GROWTH, JOBS )(2, 2st Order) top

( GROWTH, GLOBAL )(3, 2st Order) top

( GROWTH, USMCA )(1, 2st Order) top

( GROWTH, SPENDING )(1, 2st Order) top

( GROWTH, PRODUCTIVITY )(1, 2st Order) top

( GROWTH, MONETARY )(2, 2st Order) top

( GROWTH, LABOR )(1, 2st Order) top

FEDERAL_RESERVE(18, 1th Order)

( FEDERAL_RESERVE )(18, 1th Order) top

( FEDERAL_RESERVE, POLICY )(2, 2st Order) top

( FEDERAL_RESERVE, REGULATORY )(2, 2st Order) top

( FEDERAL_RESERVE, EMPLOYMENT )(3, 2st Order) top

( FEDERAL_RESERVE, CRA )(3, 2st Order) top

( FEDERAL_RESERVE, SPEECH )(2, 2st Order) top

( FEDERAL_RESERVE, RISKS )(3, 2st Order) top

( FEDERAL_RESERVE, MONETARY )(1, 2st Order) top

( FEDERAL_RESERVE, GROWTH )(2, 2st Order) top

( FEDERAL_RESERVE, GOVERNMENTS )(2, 2st Order) top

References

( ECONOMY ) top
( ECONOMY, POLICY ) top
( ECONOMY, POLICY, TRADE ) top
(Read more) top. We see signs of global growth bottoming out, we see reduced trade policy uncertainty.
(Read more) top
We don't give advice on trade policy, but I would just say this, that I think the signing and the enactment of and implementation of USMCA will be a positive, at least in the sense that it removes uncertainty around trade policy
( ECONOMY, POLICY, GROWTH ) top
(Read more) top. We see signs of global growth bottoming out, we see reduced trade policy uncertainty.
(Read more) top... question, can you work with me to ensure that The Federal Reserve joins this multi-agency effort with an eye to avoiding financial bottlenecks and keeping this important space industry on path to a healthy growth rate.
Jerome Powell: (50:56)
It's the first I'm hearing about it, but I will surely, I'm happy to assure you that we'll take a close look at that, and if it's something...
(Read more) topPresident just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome Powell: (01:36:26)
We don't give advice on trade policy, but I would just say this, that I think the signing and the enactment of and implementation of USMCA will be a positive, at least in the...
( ECONOMY, POLICY, USMCA ) top
(Read more) topPresident just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome Powell: (01:36:26)
We don't give advice on trade policy, but I would...
( ECONOMY, POLICY, MONETARY ) top
(Read more) topNow Chairman Powell, I'm not going to ask you to weigh in or arbitrate a domestic political dispute, but when the FOMC conducts monetary policy, given what you said about the lag time of fiscal policy, is it fair to say that this president's policies are impacting today's economic conditions.
Jerome Powell: (01:23:06)
At...
(Read more) top
I think our consideration was really that the right thing to do is to get monetary policy back toward a place where it reflected an economy that had recovered quite a bit for the benefit of all people, including low and moderate income people, including my minorities.
Ms....
( ECONOMY, POLICY, LAG ) top
(Read more) topChairman Powell, welcome back to our committee, and I want to first touch on your testimony about the importance of fiscal policy and supporting the economy. In general, what would you say is the lag time associated with a major change in fiscal policy.
Jerome Powell: (01:21:16)
Well, it can tend to be long, as you know
(Read more) topNow Chairman Powell, I'm not going to ask you to weigh in or arbitrate a domestic political dispute, but when the FOMC conducts monetary policy, given what you said about the lag time of fiscal policy, is it fair to say that this president's policies are impacting today's economic conditions.
Jerome Powell: (01:23:06)
At a high level, of course, they are.
Mr....
( ECONOMY, POLICY, FED ) top
(Read more) top Did the Fed consider how raising rates would disproportionately impact those who are already struggling to secure employment, like communities of color, individuals who were formally incarcerated, our immigrant...
( ECONOMY, POLICY, EMPLOYMENT ) top
(Read more) top Did the Fed consider how raising rates would disproportionately impact those who are already struggling to secure employment, like communities of color, individuals who were formally incarcerated, our immigrant neighbors.
Jerome Powell: (02:53:50)
I would say that unemployment has continued to go down quite significantly...
( ECONOMY, POLICY, ECONOMIC ) top
(Read more) top... domestic political dispute, but when the FOMC conducts monetary policy, given what you said about the lag time of fiscal policy, is it fair to say that this president's policies are impacting today's economic conditions.
Jerome Powell: (01:23:06)
At a high level, of course, they are.
Mr. Barr: (01:23:10)
Let me follow up on Representative Wagner's question about the GSIB surcharge
(Read more) topPresident just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome Powell: (01:36:26)
We don't give advice on trade policy, but I would just say this, that I think the signing and the enactment...
( ECONOMY, POLICY, WAGE ) top
(Read more) topPresident just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome Powell: (01:36:26)
We don't give advice on trade policy, but I would just say this, that I think the signing and the enactment of and implementation of USMCA will be a positive,...
( ECONOMY, POLICY, UNEMPLOYMENT ) top
(Read more) top
I would say that unemployment has continued to go down quite significantly since we began to raise rates at the end of 2016, actually the end of 15.
Ms. Pressley: (02:54:03)
But again, did the Fed consider how raising...
( ECONOMY, POLICY, THE_FEDERAL_RESERVE ) top
(Read more) top
First question, can you work with me to ensure that The Federal Reserve joins this multi-agency effort with an eye to avoiding financial bottlenecks and keeping this important space industry on path to a healthy growth rate.
Jerome Powell: (50:56)
It's the...
( ECONOMY, GROWTH ) top
( ECONOMY, GROWTH, TRADE ) top
(Read more) top See ( ECONOMY , POLICY , TRADE )
( ECONOMY, GROWTH, USMCA ) top
(Read more) top See ( ECONOMY , POLICY , USMCA )
( ECONOMY, GROWTH, GLOBAL ) top
(Read more) top. We see signs of global growth bottoming out, we see reduced trade policy uncertainty.
(Read more) topNow, several estimates put the current level of global space economy at well over $400 billion a year, with a growth rate of 8% from 2018 to 2019.
Mr. Posey: (50:09)
In December, the Bureau of Economic Analysis announced the creation of a Space Economy Satellite Account,...
( ECONOMY, GROWTH, ECONOMIC ) top
(Read more) top See ( ECONOMY , POLICY , ECONOMIC )
( ECONOMY, GROWTH, WORKFORCE ) top
(Read more) topAnd in a span of four decades since the 1970s, 38 million women joined the workforce, and without those women or economy would be 25% smaller. So when we talk about the health of our economy and we talk about GDP growth, what I don't hear a lot about, and I'd like to hear more...
( ECONOMY, GROWTH, WAGE ) top
(Read more) top See ( ECONOMY , POLICY , WAGE )
( ECONOMY, GROWTH, THE_FEDERAL_RESERVE ) top
(Read more) top See ( ECONOMY , POLICY , THE_FEDERAL_RESERVE )
( ECONOMY, GROWTH, THE_FED ) top
(Read more) top
Mr. Over the years, we've developed a rather expansive policy of Federal Reserve independence, and I believe in assuring the freedom of The Fed to act independently on a day-to-day basis to manage our economy and the critical payment system
( ECONOMY, GROWTH, SPACE_ECONOMY_SATELLITE_ACCOUNT ) top
(Read more) top
In December, the Bureau of Economic Analysis announced the creation of a Space Economy Satellite Account, a new collaborative effort to measure the relative importance of the space sector on the U.S. economy, with a special emphasis on the growing commercial space segment
( ECONOMY, GROWTH, RECALL ) top
(Read more) topI recall, over the years, that the Atlanta Fed has applied its expertise to report on the economy of the space district.
Mr. Posey: (50:42)
First question, can you work with me to ensure that The Federal Reserve...
( ECONOMY, FEDERAL_RESERVE ) top
( ECONOMY, FEDERAL_RESERVE, RISKS ) top
(Read more) top ... we have we questioned still, we should reflect appropriately upon what we know and how we respond as the American government and to the Western world in response to these threats, both cyber and health risks and the spillover effect it has on our economy.
Mr. McHenry: (04:11)
Again, Chairman Powell, thank you for being here
(Read more) top... destabilizing the financial system in this light, can the Federal Reserve justify it's conclusion that "This transaction would not appear to result in meaningfully greater or more concentrated risks to the stability of the financial system."
Jerome Powell: (02:33:23)
Yes, I think we can and I think we did
( ECONOMY, FEDERAL_RESERVE, GOVERNOR ) top
(Read more) top
In a recent speech at the San Francisco Fed's conference and the economics of climate change, a fed a governor, Lael Brainard said, "By participating more actively in climate related research and practice, the Federal Reserve can be more effective in supporting a strong economy and a stable financial system."...
( ECONOMY, FEDERAL_RESERVE, FED ) top
(Read more) top
Uh-huh (affirmative), so when the Fed step into rescue banks in a crisis, is that because you believe their role in the economy is vital.
Jerome Powell: (01:49:49)
It's really because we had no choice to prevent the financial...
(Read more) top
In a recent speech at the San Francisco Fed's conference and the economics of climate change, a fed a governor, Lael Brainard said, "By participating more actively in climate related research and practice, the Federal Reserve can be more effective in supporting a strong economy and a stable financial...
( ECONOMY, FEDERAL_RESERVE, BANKS ) top
(Read more) top
Uh-huh (affirmative), so when the Fed step into rescue banks in a crisis, is that because you believe their role in the economy is vital.
Jerome Powell: (01:49:49)
It's really because we had no choice to prevent the financial system from collapsing...
(Read more) top ... billion in total assets, and the Federal Reserve's own research suggests that the failure of a single 250 billion bank would be far worse for the economy than the failure of five separate $50 billion banks.
( ECONOMY, FEDERAL_RESERVE, WEATHER ) top
(Read more) top Of course, as you suggest, as severe weather becomes more common and that's connected to climate change, you will see those things of entering the forecast period and certainly entering our, our supervisory practices, as well as our economic...
( ECONOMY, FEDERAL_RESERVE, THE_FEDERAL_RESERVE ) top
(Read more) top See ( ECONOMY , POLICY , THE_FEDERAL_RESERVE )
( ECONOMY, FEDERAL_RESERVE, THE_FED ) top
(Read more) top See ( ECONOMY , GROWTH , THE_FED )
( ECONOMY, FEDERAL_RESERVE, SUPERVISORY ) top
(Read more) top Of course, as you suggest, as severe weather becomes more common and that's connected to climate change, you will see those things of entering the forecast period and certainly entering our, our supervisory practices, as well as our economic forecasting.
Mr. Garcia: (02:31:18)
In a recent speech at the San Francisco Fed's conference and the economics of climate change, a fed a governor,...
( ECONOMY, FEDERAL_RESERVE, SUNTRUST ) top
(Read more) top Three months ago, the Federal Reserve approved a merger between BB&T and SunTrust, which created the sixth largest bank in the US with more than 450 billion in total assets, and the Federal Reserve's own research suggests that the failure of a single 250 billion bank would be far...
( ECONOMY, FEDERAL_RESERVE, SPILLOVER ) top
(Read more) top ... questioned still, we should reflect appropriately upon what we know and how we respond as the American government and to the Western world in response to these threats, both cyber and health risks and the spillover effect it has on our economy.
Mr. McHenry: (04:11)
Again, Chairman Powell, thank you for being here
( ECONOMY, FEDERAL_RESERVE, SPEECH ) top
(Read more) top
In a recent speech at the San Francisco Fed's conference and the economics of climate change, a fed a governor, Lael Brainard said, "By participating more actively in climate related research and practice, the...
( ECONOMY, ECONOMIC ) top
( ECONOMY, ECONOMIC, USMCA ) top
(Read more) top. President just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome Powell: (01:36:26)
We don't give advice on trade policy, but I would...
( ECONOMY, ECONOMIC, TRADE ) top
(Read more) top See ( ECONOMY , POLICY , TRADE )
( ECONOMY, ECONOMIC, GOVERNOR ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , GOVERNOR )
( ECONOMY, ECONOMIC, EXPANSION ) top
(Read more) topSo your colleague at the Atlanta Fed stated recently that, "Economic and economic expansion does not die of old age." I think that's a great quote. Given that the fundamentals of the economy are strong, do you think many businesses and investors are trying to talk themselves into a...
(Read more) topPresident just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome Powell: (01:36:26)
We don't give advice on trade policy, but I would just say this, that I think the signing and the enactment of and...
( ECONOMY, ECONOMIC, CHINA ) top
(Read more) top
Mr. And we've had a little conversation about the coronavirus, China, the impacts on the economy. President just signed into law the USMCA. Do you see that as creating a runway for further economic expansion in the US: job opportunities and wage growth.
Jerome...
(Read more) top
So I think there's a lot of uncertainty around what the ultimate economic effects will be outside of China and particularly in the United States.
( ECONOMY, ECONOMIC, WEATHER ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , WEATHER )
( ECONOMY, ECONOMIC, WAGE ) top
(Read more) top See ( ECONOMY , POLICY , WAGE )
( ECONOMY, ECONOMIC, UNITED_STATES ) top
(Read more) top
So I think there's a lot of uncertainty around what the ultimate economic effects will be outside of China and particularly in the United States.
( ECONOMY, ECONOMIC, SUPERVISORY ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , SUPERVISORY )
( ECONOMY, ECONOMIC, SPEECH ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , SPEECH )
( ECONOMY, FED ) top
( ECONOMY, FED, EMPLOYMENT ) top
(Read more) top We focus on the job you've given us, which is maximum employment and stable prices and to some extent also we're with other agencies who work on financial stability and bank supervision, as opposed to the solvency of state and local governments.
Ms....
(Read more) top See ( ECONOMY , POLICY , EMPLOYMENT )
( ECONOMY, FED, SUPERVISORY ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , SUPERVISORY )
(Read more) top
I do think it's incumbent on us to do the research and understand the implications of climate change for our supervisory roles and our roles in looking after financial stability.
( ECONOMY, FED, GOVERNOR ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , GOVERNOR )
( ECONOMY, FED, CRISIS ) top
(Read more) top
Uh-huh (affirmative), so when the Fed step into rescue banks in a crisis, is that because you believe their role in the economy is vital.
Jerome Powell: (01:49:49)
It's really because we had no choice to prevent the financial system from collapsing in 2007 and...
(Read more) topNumber one, given that the assets exposed to climate change exceed the entire subprime mortgage market prior to the global financial crisis, how, if at all, is the Fed thinking about climate change as a systemic risk to the economy.
Jerome Powell: (01:59:44)
Climate change, again, a very important issue
( ECONOMY, FED, WEATHER ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , WEATHER )
( ECONOMY, FED, UNEMPLOYMENT ) top
(Read more) top See ( ECONOMY , POLICY , UNEMPLOYMENT )
( ECONOMY, FED, SPEECH ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , SPEECH )
( ECONOMY, FED, SOLVENCY ) top
(Read more) top ... the job you've given us, which is maximum employment and stable prices and to some extent also we're with other agencies who work on financial stability and bank supervision, as opposed to the solvency of state and local governments.
Ms. Tlaib: (01:49:27)
Yes or no, the Federal Reserve retains the ability to open emergency lending facilities
( ECONOMY, FED, SIR ) top
(Read more) top
Yeah, no, I mean my city filing bankruptcy was devastating to so many retirees, sir.
( ECONOMY, FED, SAN_FRANCISCO_FED ) top
(Read more) top
In a recent speech at the San Francisco Fed's conference and the economics of climate change, a fed a governor, Lael Brainard said, "By participating more actively in climate related research and practice, the Federal Reserve can be more effective...
( ECONOMY, CAPITAL ) top
(Read more) topWe'll continue to expand with the economy and then we are-
Mr. McHenry: (22:57)
Are you doing a review on your capital requirements for financial institutions that should be participating in the repo market.
Jerome Powell: (23:06)
Well, I think we've reviewed supervisory and regulatory practices that may...
(Read more) top
I mean, I have to start by saying that I think the financial system is strong and has been materially strengthened since the financial crisis, particularly the banks, high capital, high liquidity, stress tests keep them on their toes and now they have real resolution plans
(Read more) top... raising this issue with your colleagues at FSOC and urge that body to examine the extent to which a misallocation of resources away from shareholders, to serve unrelated political errands, might stifle capital formation, compromise investor returns and ultimately undermine financial stability.
Jerome Powell: (01:25:35)
I don't know that I totally understand your concern, but I'll be happy...
( ECONOMY, INTEREST ) top
(Read more) top
Taking a longer view, there has been a decline over the past quarter century in the level of interest rates consistent with stable prices and the economy operating at its full potential. This low interest rate environment may limit the ability of central banks to reduce policy interest rates enough to...
(Read more) top
Well, the concern is that if shareholders are not a prime concern of corporate boards and directors, if stakeholders who have no ownership interest in the company are the focus of a corporation, then I would submit that there is a tremendous risk of misallocation of resources away from maximum shareholder returns, and I would like to FSOC to take...
(Read more) top
There's a lot of people still recovering, but in interest of time, given that there have been no signs of the economy overheating since then and you're now cutting rates, is it possible you began cutting rates too soon.
Jerome Powell: (02:54:39)
I...
( ECONOMY, GLOBAL ) top
(Read more) top See ( ECONOMY , GROWTH , GLOBAL )
(Read more) topNumber one, given that the assets exposed to climate change exceed the entire subprime mortgage market prior to the global financial crisis, how, if at all, is the Fed thinking about climate change as a systemic risk to the economy.
Jerome Powell: (01:59:44)
Climate change, again, a very important issue
(Read more) topWe were really looking at a few things when we did that and yes, the intention was definitely to support the economy. Part of it was to offset the effects of global factors, and there I would say just the slowdown in growth in the global economy just went on and on and we felt the need to offset that and also take out some insurance against the effect that might...
( ECONOMY, CHINA ) top
(Read more) top Even though our data is limited coming out of China, and the limited data we have we questioned still, we should reflect appropriately upon what we know and how we respond as the American government and to the Western world in response to these threats,...
(Read more) top See ( ECONOMY , ECONOMIC , CHINA )
( ECONOMY, BANKS ) top
(Read more) top... the past quarter century in the level of interest rates consistent with stable prices and the economy operating at its full potential. This low interest rate environment may limit the ability of central banks to reduce policy interest rates enough to support the economy during a downturn.
(Read more) top
I mean, I have to start by saying that I think the financial system is strong and has been materially strengthened since the financial crisis, particularly the banks, high capital, high liquidity, stress tests keep them on their toes and now they have real resolution plans
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , BANKS )
(Read more) top ... billion in total assets, and the Federal Reserve's own research suggests that the failure of a single 250 billion bank would be far worse for the economy than the failure of five separate $50 billion banks. Furthermore, the former FDIC chair, Mr. Gruenberg, has warned that the FDIC would not be able to wind down a bank the size of the combined BB&T SunTrust without imposing significant losses on the...
( ECONOMY, WAGE ) top
(Read more) top
There's a great deal of research that's been done on minimum wages, and I don't know of a particular one, but there's has to be somewhere research on what a federal $15 wage increase would do.
Mr. Green: (01:19:25)
I agree with you
(Read more) top See ( ECONOMY , POLICY , WAGE )
( ECONOMY, RISKS ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , RISKS )
(Read more) topHave you looked at the transitional risks, in thinking about how that starts moving around and dislocating the economy.
Jerome Powell: (02:01:06)
So those are the things that we're at the beginning stages of looking into
(Read more) top ... supporting a strong economy and a stable financial system." Do you agree with governor Brainard's statement. If yes, what more will the Fed do in the future to identify and mitigate the financial risks of climate change.
Jerome Powell: (02:31:51)
I do think it's incumbent on us to do the research and understand the implications of climate change for our supervisory roles and our roles...
( POLICY ) top
( POLICY, MONETARY ) top
( POLICY, MONETARY, ECONOMIC ) top
(Read more) top But sustaining our economic prosperity also hinges on the Federal Reserve having good policy. The Central Bank is currently undertaking a review of its monetary policy framework to determine the tools it may need in the future.
Mr....
(Read more) topThis independence brings with it an obligation to explain clearly how we pursue our goals. Today I will review the current economic situation before turning to monetary policy.
Jerome Powell: (07:59)
The economic expansion is well into its 11th year and it is the longest on record
(Read more) top ... diminished and amid some signs that global growth may be stabilizing, the committee left the policy rate unchanged. The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market and inflation returning to the committee's symmetric 2% objective
(Read more) top See ( ECONOMY , POLICY , ECONOMIC )
( POLICY, MONETARY, CONGRESS ) top
(Read more) topMy colleagues and I strongly support the goals of maximum employment and price stability that Congress has set for monetary policy. Congress has given us an important degree of independence to pursue these goals based solely on data and objective analysis
( POLICY, MONETARY, EMPLOYMENT ) top
(Read more) topMy colleagues and I strongly support the goals of maximum employment and price stability that Congress has set for monetary policy. Congress has given us an important degree of independence to pursue these goals based solely on data and objective analysis
(Read more) top Let him know that you not only have a mandate for inflationary or monetary policy, you have a dual mandate, employment, jobs.
Mr. Scott: (01:09:44)
And here's the other thing, you need to remind Mr. [inaudible 01:09:48], that this piece of legislation, this law, the Community Reinvestment Act is...
(Read more) top See ( ECONOMY , POLICY , EMPLOYMENT )
( POLICY, MONETARY, WAGE ) top
(Read more) top
Also during this period of time, would you say that, a number of us has been arguing, and finally we are moving toward a $15 an hour minimum wage for individuals on the bottom, would you think that that has something to do with helping them also, the fact that many states have adopted a $15 or higher minimum wage than what had been put put in...
( POLICY, MONETARY, POLICIES ) top
(Read more) top. It really is up to other policies by governments, state and local governments, the federal government, and frankly businesses too, to do what they can to close that gap
(Read more) top... to weigh in or arbitrate a domestic political dispute, but when the FOMC conducts monetary policy, given what you said about the lag time of fiscal policy, is it fair to say that this president's policies are impacting today's economic conditions.
Jerome Powell: (01:23:06)
At a high level, of course, they are.
Mr. Barr: (01:23:10)
Let me follow up on Representative Wagner's...
( POLICY, MONETARY, OUTLOOK ) top
(Read more) topAs long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy will likely remain appropriate. Of course policy is not on a preset course, if developments emerge that cause a material reassessment of our outlook we would respond...
( POLICY, MONETARY, LABOR ) top
(Read more) topWe do see those things now because the labor market is strong, but really we need, really, other programs to address the longer run needs of those communities other than just the business cycle and monetary policy.
Mr. Meeks: (46:16)
Also...
( POLICY, MONETARY, INTEREST ) top
(Read more) top See ( ECONOMY , INTEREST )
( POLICY, MONETARY, INDIVIDUALS ) top
(Read more) top
Also during this period of time, would you say that, a number of us has been arguing, and finally we are moving toward a $15 an hour minimum wage for individuals on the bottom, would you think that that has something to do with helping them also, the fact that many states have adopted a $15 or higher minimum wage than what had been put put in place.
Jerome...
(Read more) top Did the Fed consider how raising rates would disproportionately impact those who are already struggling to secure employment, like communities of color, individuals who were formally incarcerated, our immigrant neighbors.
Jerome Powell: (02:53:50)
I would say that unemployment has continued to go down quite significantly since we began to raise rates at...
( POLICY, MONETARY, GROWTH ) top
(Read more) top
In our subsequent meetings with some uncertainties surrounding trade having diminished and amid some signs that global growth may be stabilizing, the committee left the policy rate unchanged. The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market and inflation...
( POLICY, GROWTH ) top
(Read more) top See ( POLICY , MONETARY , GROWTH )
(Read more) top. We see signs of global growth bottoming out, we see reduced trade policy uncertainty. Overall, in the background we see strong job creation, continued moderate growth, all of those things
(Read more) top See ( ECONOMY , POLICY , GROWTH )
( POLICY, CONGRESS ) top
(Read more) top
Every member of Congress should celebrate these remarkable outcomes, which have resulted from Republican leadership on pro-growth policies like tax reform and regulatory rightsizing
(Read more) top See ( POLICY , MONETARY , CONGRESS )
(Read more) top When you're talking about effecting different sectors of the business community or of the population, that really should be another agency or Congress itself in fiscal policy rather than the-
Ms. Waters: (01:00:16)
The witness has requested to continue to provide an answer for the record.
Speaker 1: (01:00:20)
I yield back
( POLICY, ECONOMIC ) top
( POLICY, ECONOMIC, TRADE ) top
(Read more) top
In our subsequent meetings with some uncertainties surrounding trade having diminished and amid some signs that global growth may be stabilizing, the committee left the policy rate unchanged
(Read more) top See ( ECONOMY , POLICY , TRADE )
( POLICY, ECONOMIC, REGULATORY ) top
(Read more) top
Every member of Congress should celebrate these remarkable outcomes, which have resulted from Republican leadership on pro-growth policies like tax reform and regulatory rightsizing. But sustaining our economic prosperity also hinges on the Federal Reserve having good policy
( POLICY, ECONOMIC, GROWTH ) top
(Read more) top See ( POLICY , MONETARY , GROWTH )
(Read more) top See ( ECONOMY , POLICY , GROWTH )
( POLICY, ECONOMIC, USMCA ) top
(Read more) top See ( ECONOMY , POLICY , USMCA )
( POLICY, ECONOMIC, POLICIES ) top
(Read more) top
Every member of Congress should celebrate these remarkable outcomes, which have resulted from Republican leadership on pro-growth policies like tax reform and regulatory rightsizing. But sustaining our economic prosperity also hinges on the Federal Reserve having good policy
(Read more) top See ( POLICY , MONETARY , POLICIES )
( POLICY, ECONOMIC, LABOR ) top
(Read more) top The prime age labor force participation has reached 2.2 million people that were previously out of the workforce and not surprisingly consumer confidence has increased dramatically since the month before the president's...
( POLICY, ECONOMIC, EXPANSION ) top
(Read more) top See ( ECONOMY , ECONOMIC , EXPANSION )
( POLICY, ECONOMIC, WORKFORCE ) top
(Read more) top The prime age labor force participation has reached 2.2 million people that were previously out of the workforce and not surprisingly consumer confidence has increased dramatically since the month before the president's election.
Mr. McHenry: (00:36)
Every member of Congress should celebrate these...
( POLICY, ECONOMIC, WAGE ) top
(Read more) top See ( ECONOMY , POLICY , WAGE )
( POLICY, ECONOMIC, THE_FOMC ) top
(Read more) top. The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market and inflation returning to the committee's symmetric 2% objective
( POLICY, TRADE ) top
(Read more) top See ( POLICY , ECONOMIC , TRADE )
(Read more) top. We see signs of global growth bottoming out, we see reduced trade policy uncertainty. Overall, in the background we see strong job creation, continued moderate growth, all of those things
(Read more) top Fiscal policy has changed profoundly in the past three years, tax cuts, deregulation, a less restrained energy sector, a pullback from Dodd-Frank, repeal of the individual mandate, new trade deals.
(Read more) top See ( ECONOMY , POLICY , TRADE )
( POLICY, INTEREST ) top
(Read more) topAll I'll say is that I've consistently, from the days of Mr. Greenspan, been pushing for somewhat lower interest rates and an expansionary policy, particularly quantitative easing, because you returned $55 billion to the Treasury last year, and that's, I know, not your purpose, but think of the kids that will...
(Read more) top. We have, as you pointed out, one tool, which is our interest rate policy.
Jerome Powell: (01:00:03)
As you pointed out, one tool which is our interest rate policy
(Read more) top See ( ECONOMY , INTEREST )
( POLICY, GLOBAL ) top
(Read more) top
The spillover effects of this question of Chinese policy is significant, not just for cybersecurity but what we're seeing with the Coronavirus and the destabilizing effects it has on global health.
(Read more) top
In our subsequent meetings with some uncertainties surrounding trade having diminished and amid some signs that global growth may be stabilizing, the committee left the policy rate unchanged. The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market and...
(Read more) top. We see signs of global growth bottoming out, we see reduced trade policy uncertainty. Overall, in the background we see strong job creation, continued moderate growth, all of those things
( POLICY, REGULATORY ) top
(Read more) top See ( POLICY , ECONOMIC , REGULATORY )
(Read more) top
Well, I think we've reviewed supervisory and regulatory practices that may be affecting the flow of liquidity. Are our main focus of course is the federal funds market and our ability to transmit our policy decisions smoothly into the money markets through...
( POLICY, FEDERAL ) top
(Read more) topWe lowered the federal funds target range at our July, September, and October meetings, bringing the current target range to one and a half to one and three quarters percent.
Jerome Powell: (12:02)
In our subsequent...
(Read more) top. Are our main focus of course is the federal funds market and our ability to transmit our policy decisions smoothly into the money markets through their federal funds rate
(Read more) top ... gaps, and they're very troubling, and they're not, in the long run, something that monetary policy can address. It really is up to other policies by governments, state and local governments, the federal government, and frankly businesses too, to do what they can to close that gap.
( POLICY, EMPLOYMENT ) top
(Read more) top See ( POLICY , MONETARY , EMPLOYMENT )
(Read more) top See ( ECONOMY , POLICY , EMPLOYMENT )
( POLICY, WAGE ) top
(Read more) top See ( POLICY , MONETARY , WAGE )
(Read more) top See ( ECONOMY , POLICY , WAGE )
( FED ) top
( FED, WAGE ) top
(Read more) topHas there been a study to give us some sense of what a $15 an hour wage will do for the economy, a study for what a $15 an hour wage will do for the economy. Has the Fed done such a study.
Jerome Powell: (01:18:00)
The Fed has not
(Read more) top See ( ECONOMY , WAGE )
(Read more) top. So will the Fed set a goal for wage growth, and are you considering this approach as part of the framework review.
Jerome Powell: (02:20:22)
I don't see us targeting wage growth as an independent item
(Read more) topI don't see us targeting a particular level of wage growth.
Ms. So have you considered adopting a floor for wage growth. For example, once we set a certain percentage increase in pay in wages, the Fed may consider switching to 2% inflation...
( FED, FEDERAL_RESERVE ) top
( FED, FEDERAL_RESERVE, CRA ) top
(Read more) top
Chairman Powell, Governor Brainard also suggested in a speech last month that the Federal Reserve created a database of 6,000 public CRA evaluations. Looking at how barriers CRA investments support low and moderate income communities, has the Fed used this database to evaluate how bank activities would be assessed under the OCC's...
(Read more) topWe actually haven't made a decision yet about whether or when to make a proposal, but nonetheless, the whole effort was undertaken with a view to creating a modernization proposal for CRA.
Ms. As you know, the Federal Reserve has a dual mandate, price stability and maximum employment
( FED, FEDERAL_RESERVE, WAGE ) top
(Read more) top See ( FED , WAGE )
( FED, FEDERAL_RESERVE, SPEECH ) top
(Read more) top
Chairman Powell, Governor Brainard also suggested in a speech last month that the Federal Reserve created a database of 6,000 public CRA evaluations. Looking at how barriers CRA investments support low and moderate income communities, has the Fed used this database...
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , SPEECH )
( FED, FEDERAL_RESERVE, GROWTH ) top
(Read more) top. So will the Fed set a goal for wage growth, and are you considering this approach as part of the framework review.
Jerome Powell: (02:20:22)
I don't see us targeting wage growth as an independent item
( FED, FEDERAL_RESERVE, GOVERNOR ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , GOVERNOR )
( FED, FEDERAL_RESERVE, EMPLOYMENT ) top
(Read more) top See ( ECONOMY , FED , EMPLOYMENT )
(Read more) top
Ms. As you know, the Federal Reserve has a dual mandate, price stability and maximum employment. So will the Fed set a goal for wage growth, and are you considering this approach as part of the framework review.
Jerome Powell: (02:20:22)
I don't see us targeting wage growth as an independent...
( FED, FEDERAL_RESERVE, WEATHER ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , WEATHER )
( FED, FEDERAL_RESERVE, SUPERVISORY ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , SUPERVISORY )
( FED, FEDERAL_RESERVE, SOLVENCY ) top
(Read more) top See ( ECONOMY , FED , SOLVENCY )
( FED, FEDERAL_RESERVE, SIR ) top
(Read more) top See ( ECONOMY , FED , SIR )
( FED, UNEMPLOYMENT ) top
(Read more) top Is it true that most of that period has seen unemployment well above target while we almost never seen inflation above target.
Jerome Powell: (02:53:20)
That is true.
Ms. So meanwhile, black unemployment remains double that of white unemployment
(Read more) topNow, the Fed began raising rates in 2016, even though inflation was still below target, and when rates go up, unemployment tends to as well.
(Read more) top See ( ECONOMY , POLICY , UNEMPLOYMENT )
(Read more) topwe really have learned something since then and that is that unemployment can be lower than most people thought without inflation.
Ms. Pressley: (02:54:49)
So bearing that in mind, knowing what you know, would you still have supported raising the interest rates...
( FED, RISKS ) top
(Read more) top. The Fed has acknowledged in its financial stability report that cyber risks don't fit neatly either, but the risks are real.
(Read more) topThere are some serious systemic risks to the economy if we leave those unaddressed.
Mr. Casten: (01:59:24)
I just want to understand a little bit how you and the Fed are thinking about those risks
(Read more) topIf yes, what more will the Fed do in the future to identify and mitigate the financial risks of climate change.
Jerome Powell: (02:31:51)
I do think it's incumbent on us to do the research and understand the implications of climate change for our supervisory roles and our roles...
( FED, EMPLOYMENT ) top
(Read more) top See ( ECONOMY , FED , EMPLOYMENT )
(Read more) top See ( FED , FEDERAL_RESERVE , EMPLOYMENT )
(Read more) top And so after Dr. King's assassination, Coretta Scott King picked up the mantle pushing the Fed to adopt a full employment mandate and was actually standing behind President Carter as he signed the Humphrey-Hawkins act into law
(Read more) top See ( ECONOMY , POLICY , EMPLOYMENT )
( FED, INTEREST ) top
(Read more) topThey very wealthy people. Do they have savings and make different amounts of money depending on what the Fed does with interest rates.
Jerome Powell: (02:09:54)
Yes.
Ms. Porter: (02:09:55)
What about Kellyanne Conway
(Read more) top See ( ECONOMY , INTEREST )
(Read more) top
So bearing that in mind, knowing what you know, would you still have supported raising the interest rates when the Fed did.
Jerome Powell: (02:54:55)
I did support it then. I think you have to judge those decisions on what we knew at the time.
Mr. Lawson: (02:55:03)
Would more...
( FED, INFLATION ) top
(Read more) topFor example, once we set a certain percentage increase in pay in wages, the Fed may consider switching to 2% inflation rate.
Jerome Powell: (02:20:59)
Well, we've said that we.
(Read more) top Is it true that most of that period has seen unemployment well above target while we almost never seen inflation above target.
Jerome Powell: (02:53:20)
That is true.
Ms. So meanwhile, black unemployment remains double that of white unemployment
(Read more) topNow, the Fed began raising rates in 2016, even though inflation was still below target, and when rates go up, unemployment tends to as well.
(Read more) topwe really have learned something since then and that is that unemployment can be lower than most people thought without inflation.
Ms. Pressley: (02:54:49)
So bearing that in mind, knowing what you know, would you still have supported raising the interest rates when the Fed did.
Jerome Powell: (02:54:55)
I did support it...
( FED, GROWTH ) top
(Read more) top See ( FED , FEDERAL_RESERVE , GROWTH )
(Read more) topI don't see us targeting a particular level of wage growth.
Ms. So have you considered adopting a floor for wage growth. For example, once we set a certain percentage increase in pay in wages, the Fed may consider switching to 2% inflation rate.
Jerome Powell:...
( FED, INFLUENCE ) top
(Read more) top Outside of administration officials, what other kinds of people might want to influence you and in regard to the Fed's decision making.
Jerome Powell: (02:08:53)
What other people might want to influence us
(Read more) top
Ms. Would you say that someone like Jeff Bezos, the CEO of Amazon, one of the richest men in the world, could benefit from having influence over the Fed's decisions.
Jerome Powell: (02:09:41)
I wouldn't know, actually
( FED, GOVERNMENTS ) top
(Read more) top ... which is maximum employment and stable prices and to some extent also we're with other agencies who work on financial stability and bank supervision, as opposed to the solvency of state and local governments.
Ms. Tlaib: (01:49:27)
Yes or no, the Federal Reserve retains the ability to open emergency lending facilities
(Read more) top Do you not believe that the governments of Detroit, and Puerto Rico, also play a vital role that should be preserved even if financial crisis makes it hard for them to borrow money.
Jerome Powell: (01:50:22)
What I believe is that's...
( FED, CRISIS ) top
(Read more) top See ( ECONOMY , FED , CRISIS )
(Read more) top Do you not believe that the governments of Detroit, and Puerto Rico, also play a vital role that should be preserved even if financial crisis makes it hard for them to borrow money.
Jerome Powell: (01:50:22)
What I believe is that's not a job for the Fed
( CAPITAL ) top
( CAPITAL, BANKS ) top
(Read more) top... FSOC, and I believe it was part of the recent annual report, that the thought being, these are now very, very important channels through which mortgages are originated. And in a case of a downturn, the banks have high capital, they've got lots of regulation, lots of liquidity and that's in a good place
(Read more) top See ( ECONOMY , BANKS )
(Read more) topSo as the fiscal year 2020 Appropriation Law directs treasury department in consultation with the banking agencies to study whether any changes in banks'regulatory capital requirements are needed because of [Sesil 02:07:26]. If the study concludes that that is the case, are you open to modifying regulatory capital requirements accordingly.
Jerome Powell:...
(Read more) top To guard against climate change impacts, the Bank of England has decided to stress test the UK's capital banks, largest banks, pardon me, and insurance companies against the risks associated with climate change." Will the Federal Reserve follow suit and develop climate-related stress tests.
Jerome Powell:...
( CAPITAL, REGULATORY ) top
(Read more) top
Well, I think we've reviewed supervisory and regulatory practices that may be affecting the flow of liquidity.
(Read more) top... banking agencies to study whether any changes in banks'regulatory capital requirements are needed because of [Sesil 02:07:26]. If the study concludes that that is the case, are you open to modifying regulatory capital requirements accordingly.
Jerome Powell: (02:07:36)
Well, yes.
( CAPITAL, CRISIS ) top
(Read more) top
I mean, I have to start by saying that I think the financial system is strong and has been materially strengthened since the financial crisis, particularly the banks, high capital, high liquidity, stress tests keep them on their toes and now they have real resolution plans
(Read more) top And do you expect that there will be further review in calibration of these tests to reflect either current conditions or alternatively what we've learned since the crisis about what works and what doesn't work and what may be adding to significant reserves that many of these institutions.
Jerome Powell: (02:47:29)
My strong view is that capital, the levels...
(Read more) top
Mr. Well that's not undoubtedly true, but I think we all agree that during the crisis or pre-crisis, right, capital levels weren't adequate to sort of say that their higher isn't definitive in terms of are they too high
( CAPITAL, RISK ) top
(Read more) topWhat do you think the most significant risk to the financial system is today.
Jerome Powell: (01:14:17)
I mean, I have to start by saying that I think the financial system is strong and has been materially strengthened since the financial...
(Read more) top... are not a prime concern of corporate boards and directors, if stakeholders who have no ownership interest in the company are the focus of a corporation, then I would submit that there is a tremendous risk of misallocation of resources away from maximum shareholder returns, and I would like to FSOC to take a look at that.
Ms. Waters: (01:26:08)
The gentleman yields back.
Jerome Powell:...
( CAPITAL, LIQUIDITY ) top
(Read more) top
Well, I think we've reviewed supervisory and regulatory practices that may be affecting the flow of liquidity.
(Read more) topAnd in a case of a downturn, the banks have high capital, they've got lots of regulation, lots of liquidity and that's in a good place. But these institutions are operating, sometimes under-funding themselves with credit lines, which might not be available
(Read more) top
I mean, I have to start by saying that I think the financial system is strong and has been materially strengthened since the financial crisis, particularly the banks, high capital, high liquidity, stress tests keep them on their toes and now they have real resolution plans.
( CAPITAL, INSURANCE ) top
(Read more) top
Mr. I know you're aware about the Fed's work on the international insurance capital standard that has being developed for the world. I've had my reservations about entering into an international agreement that does not conform with our current state-based approach to regulating...
(Read more) top To guard against climate change impacts, the Bank of England has decided to stress test the UK's capital banks, largest banks, pardon me, and insurance companies against the risks associated with climate change." Will the Federal Reserve follow suit and develop climate-related stress tests.
Jerome Powell: (02:29:35)
So we're monitoring...
( CAPITAL, FSOC ) top
(Read more) top
As you mentioned, we have looked at that at FSOC, and I believe it was part of the recent annual report, that the thought being, these are now very, very important channels through which mortgages are originated
(Read more) topAs a leading voice on the financial stability oversight council, will you commit to raising this issue with your colleagues at FSOC and urge that body to examine the extent to which a misallocation of resources away from shareholders, to serve unrelated political errands, might stifle capital formation, compromise investor returns...
( CAPITAL, FEDERAL_RESERVE ) top
(Read more) top ... change impacts, the Bank of England has decided to stress test the UK's capital banks, largest banks, pardon me, and insurance companies against the risks associated with climate change." Will the Federal Reserve follow suit and develop climate-related stress tests.
Jerome Powell: (02:29:35)
So we're monitoring what the Bank of England is doing
( CAPITAL, SUPERVISORY ) top
(Read more) top
Well, I think we've reviewed supervisory and regulatory practices that may be affecting the flow of liquidity.
( CAPITAL, SHAREHOLDERS ) top
(Read more) top... on the financial stability oversight council, will you commit to raising this issue with your colleagues at FSOC and urge that body to examine the extent to which a misallocation of resources away from shareholders, to serve unrelated political errands, might stifle capital formation, compromise investor returns and ultimately undermine financial stability.
Jerome Powell: (01:25:35)
I don't know that...
( CAPITAL, MISALLOCATION ) top
(Read more) topAs a leading voice on the financial stability oversight council, will you commit to raising this issue with your colleagues at FSOC and urge that body to examine the extent to which a misallocation of resources away from shareholders, to serve unrelated political errands, might stifle capital formation, compromise investor returns and ultimately undermine financial stability.
Jerome Powell:...
( CAPITAL, COLLEAGUES ) top
(Read more) topAs a leading voice on the financial stability oversight council, will you commit to raising this issue with your colleagues at FSOC and urge that body to examine the extent to which a misallocation of resources away from shareholders, to serve unrelated political errands, might stifle capital formation, compromise investor...
(Read more) topAnd so I wondered if you might give some more color on that or give some reasons why you and your colleagues have been a little more hesitant to answer that.
Jerome Powell: (02:46:31)
I can't give more clarity than exists, so I'll just say again, we do expect that the core of the stress capital...
( BANKS ) top
( BANKS, POLICY ) top
(Read more) top. We have, as you pointed out, one tool, which is our interest rate policy.
Jerome Powell: (01:00:03)
As you pointed out, one tool which is our interest rate policy
( BANKS, KEEP ) top
(Read more) top
I think we can, and have to, keep doing what we are doing, which is to make this really a top, if not the top supervisory priority, not just for the banks but for The Fed and for institutions across the American landscape
(Read more) topBut there's never a feeling that you have gotten to a place of comfort on that, we just have to keep working. And it's staying in the minute, learning what the new attacks are, making sure that the banks are doing the basic housekeeping
(Read more) topWe do have this grant of independence, including the GAO exemption, and I think to keep that we need to stay with what you've given us to do, which is maximum limits, stable prices, supervise the banks, look after financial statements.
Mr. Clay: (58:30)
On another subject,...
(Read more) top... have to start by saying that I think the financial system is strong and has been materially strengthened since the financial crisis, particularly the banks, high capital, high liquidity, stress tests keep them on their toes and now they have real resolution plans.
( BANKS, INTEREST ) top
(Read more) top See ( ECONOMY , INTEREST )
(Read more) top See ( POLICY , INTEREST )
( BANKS, RISKS ) top
(Read more) topWhat can the U.S. do better, Chairman Powell, in order to prioritize these constant flow of cyber risks and strengthen the resilience of our financial sector.
Jerome Powell: (32:41)
I think we can, and have to, keep doing what we are doing, which is to make this really a top, if not the top supervisory...
(Read more) top ... however, as it relates to the public's very reasonable expectation that we would make sure that the financial sector, the banks and the utilities that we supervise, are resilient against the longer term risks from climate change.
(Read more) top To guard against climate change impacts, the Bank of England has decided to stress test the UK's capital banks, largest banks, pardon me, and insurance companies against the risks associated with climate change." Will the Federal Reserve follow suit and develop climate-related stress tests.
Jerome Powell: (02:29:35)
So we're monitoring what the Bank of England...
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , RISKS )
( BANKS, FEDERAL_RESERVE ) top
(Read more) top See ( CAPITAL , FEDERAL_RESERVE )
(Read more) top Three months ago, the Federal Reserve approved a merger between BB&T and SunTrust, which created the sixth largest bank in the US with more than 450 billion in total assets, and the Federal Reserve's own research suggests that the failure...
(Read more) top... able to wind down a bank the size of the combined BB&T SunTrust without imposing significant losses on the deposit insurance fund and potentially destabilizing the financial system in this light, can the Federal Reserve justify it's conclusion that "This transaction would not appear to result in meaningfully greater or more concentrated risks to the stability of the financial system."
Jerome Powell:...
( BANKS, FED ) top
(Read more) top
Uh-huh (affirmative), so when the Fed step into rescue banks in a crisis, is that because you believe their role in the economy is vital.
Jerome Powell: (01:49:49)
It's really because we had no choice to prevent the financial...
( BANKS, VOLCKER_RULE ) top
(Read more) top
So we did just put out a proposal on part of the Volcker Rule.
( BANKS, CRISIS ) top
(Read more) top See ( CAPITAL , CRISIS )
(Read more) top See ( ECONOMY , FED , CRISIS )
(Read more) top And that the rule was intended to limit banks from engaging in risky investment activities that could contribute to a future financial crisis.
Jerome Powell: (02:21:49)
So we did just put out a proposal on part of the Volcker Rule
( BANKS, THE_FED ) top
(Read more) top
I think we can, and have to, keep doing what we are doing, which is to make this really a top, if not the top supervisory priority, not just for the banks but for The Fed and for institutions across the American landscape. We have very high expectations, particularly of the largest banks on their ability to fend off cyber attacks
(Read more) top
I think that has historically not been a function of The Fed, and of central banks generally. We have, as you pointed out, one tool, which is our interest rate policy.
Jerome Powell: (01:00:03)
As you pointed out, one tool which is our interest rate policy
( BANKS, REGULATORS ) top
(Read more) topCommunity banks, state regulators and community groups have called on these agencies to extend the comment period.
( MONETARY ) top
( MONETARY, CONGRESS ) top
(Read more) top See ( POLICY , MONETARY , CONGRESS )
(Read more) top What this exemption does is it prevents the GAO from coming in and looking at and assessing individual monetary policy decisions, which Congress saw fit, you saw fit, your Congress saw fit, to carve out of law.
( MONETARY, EMPLOYMENT ) top
(Read more) top See ( POLICY , MONETARY , EMPLOYMENT )
(Read more) topThat's to be dealt with by fiscal authorities rather than by the monetary authority. We focus on the job you've given us, which is maximum employment and stable prices and to some extent also we're with other agencies who work on financial stability and bank supervision, as opposed to the solvency of state and local governments.
Ms....
(Read more) top See ( ECONOMY , POLICY , EMPLOYMENT )
( MONETARY, ECONOMY ) top
(Read more) top
I think our consideration was really that the right thing to do is to get monetary policy back toward a place where it reflected an economy that had recovered quite a bit for the benefit of all people, including low and moderate income people, including my minorities.
Ms. Pressley: (02:54:25)
There's a lot of people still...
( MONETARY, ECONOMIC ) top
(Read more) top See ( POLICY , MONETARY , ECONOMIC )
(Read more) top See ( ECONOMY , POLICY , ECONOMIC )
( MONETARY, INTEREST ) top
(Read more) top. With monetary policy, we can go into a room and change interest rates, and do. Obviously, fiscal policy tends to take a lot of work and some time.
Mr. Barr: (01:21:29)
Well, let me ask you this
(Read more) top See ( ECONOMY , INTEREST )
( MONETARY, GOVERNMENTS ) top
(Read more) top. It really is up to other policies by governments, state and local governments, the federal government, and frankly businesses too, to do what they can to close that gap
(Read more) top See ( FED , GOVERNMENTS )
( MONETARY, GAO ) top
(Read more) top What this exemption does is it prevents the GAO from coming in and looking at and assessing individual monetary policy decisions, which Congress saw fit, you saw fit, your Congress saw fit, to carve out of law
( MONETARY, FED ) top
(Read more) top See ( ECONOMY , POLICY , FED )
( MONETARY, WAGE ) top
(Read more) top See ( POLICY , MONETARY , WAGE )
( MONETARY, POLITICAL ) top
(Read more) topNow Chairman Powell, I'm not going to ask you to weigh in or arbitrate a domestic political dispute, but when the FOMC conducts monetary policy, given what you said about the lag time of fiscal policy, is it fair to say that this president's policies are impacting today's economic conditions.
Jerome...
( MONETARY, POLICIES ) top
(Read more) top See ( POLICY , MONETARY , POLICIES )
( GROWTH ) top
( GROWTH, WAGE ) top
(Read more) top The unemployment rate is at a 50 year low. More Americans are employed today than ever before. Wage growth is the highest in a decade and the lowest income workers have been seeing the fastest pay increase growing at 16% since the 2016 election
(Read more) top See ( ECONOMY , POLICY , WAGE )
(Read more) top See ( FED , WAGE )
(Read more) topThose are our two statutory objectives. And those are the things that we target. I don't see us targeting a particular level of wage growth.
Ms. So have you considered adopting a floor for wage growth. For example, once we set a certain percentage increase in pay in wages, the Fed may consider switching to 2% inflation...
( GROWTH, TRADE ) top
(Read more) top See ( POLICY , ECONOMIC , TRADE )
(Read more) top See ( POLICY , TRADE )
(Read more) top See ( ECONOMY , POLICY , TRADE )
( GROWTH, ECONOMIC ) top
(Read more) top Productivity gains have been subpar throughout this long economic expansion. Finding ways to boost labor force participation and productivity growth would benefit Americans and should remain a national priority.
Jerome Powell: (11:34)
I'll turn now to...
(Read more) top See ( POLICY , MONETARY , ECONOMIC )
(Read more) top See ( ECONOMY , POLICY , ECONOMIC )
( GROWTH, JOBS ) top
(Read more) topWages have been rising, particularly for lower paying jobs.
Jerome Powell: (09:23)
GDP rose at a moderate rate over the second half of last year
(Read more) top
Finally, as to the jobs growth we've seen recently, I do need to point out the jobs grew much faster in the last three years of the Obama administration than the first three years of the Trump administration
( GROWTH, GLOBAL ) top
(Read more) top See ( POLICY , GLOBAL )
(Read more) top See ( ECONOMY , GROWTH , GLOBAL )
( GROWTH, USMCA ) top
(Read more) top See ( ECONOMY , POLICY , USMCA )
( GROWTH, SPENDING ) top
(Read more) top. Growth in consumer spending moderated toward the end of the year following earlier strong increases, but the fundamental supporting household spending remained solid
( GROWTH, PRODUCTIVITY ) top
(Read more) top Productivity gains have been subpar throughout this long economic expansion. Finding ways to boost labor force participation and productivity growth would benefit Americans and should remain a national priority.
Jerome Powell: (11:34)
I'll turn now to monetary policy
( GROWTH, MONETARY ) top
(Read more) top
I'll turn now to monetary policy.
(Read more) top ... uncertainties surrounding trade having diminished and amid some signs that global growth may be stabilizing, the committee left the policy rate unchanged. The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market and inflation returning to the committee's symmetric 2% objective
( GROWTH, LABOR ) top
(Read more) top Productivity gains have been subpar throughout this long economic expansion. Finding ways to boost labor force participation and productivity growth would benefit Americans and should remain a national priority.
Jerome Powell: (11:34)
I'll turn now to monetary policy
( FEDERAL_RESERVE ) top
( FEDERAL_RESERVE, POLICY ) top
(Read more) top ... which have resulted from Republican leadership on pro-growth policies like tax reform and regulatory rightsizing. But sustaining our economic prosperity also hinges on the Federal Reserve having good policy. The Central Bank is currently undertaking a review of its monetary policy framework to determine the tools it may need in the future.
Mr. McHenry: (01:05)
Chairman Powell, I raise the concern...
(Read more) top
Mr. Over the years, we've developed a rather expansive policy of Federal Reserve independence, and I believe in assuring the freedom of The Fed to act independently on a day-to-day basis to manage our economy and the critical payment system
( FEDERAL_RESERVE, REGULATORY ) top
(Read more) top See ( POLICY , ECONOMIC , REGULATORY )
(Read more) topIn January, Vice Chairman Quarles delivered a speech where he spoke about bringing "reasonable transparency" to several aspects of the Federal Reserve's supervisory and regulatory framework. Last week, The Fed released the CCAR stress test scenarios.
Ms. Wagner: (30:57)
To my knowledge, there has been no progress or update on the status of the stress capital buffer,...
( FEDERAL_RESERVE, EMPLOYMENT ) top
(Read more) top See ( ECONOMY , FED , EMPLOYMENT )
(Read more) top See ( FED , FEDERAL_RESERVE , EMPLOYMENT )
(Read more) top... interest of time, if you would indulge me an answer as succinctly as possible, yes or no, Mr. Chairman, given persistent concerns about inflation, do you believe the Federal Reserve can achieve full employment. And by full employment, I mean anyone who wants to work and can work will have a job available to them.
Jerome Powell: (02:52:29)
First, thank you for that history
( FEDERAL_RESERVE, CRA ) top
(Read more) top
And in remarks last month, Federal Reserve Board Governor Brainard, said that, "Given that reforms to the CRA regulations are likely to set expectations for a few decades, it is more important to get the reforms done right than to do them quickly
(Read more) top See ( FED , FEDERAL_RESERVE , CRA )
( FEDERAL_RESERVE, SPEECH ) top
(Read more) top See ( FED , FEDERAL_RESERVE , SPEECH )
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , SPEECH )
( FEDERAL_RESERVE, RISKS ) top
(Read more) top See ( ECONOMY , FEDERAL_RESERVE , RISKS )
(Read more) top See ( BANKS , RISKS )
( FEDERAL_RESERVE, MONETARY ) top
(Read more) top But sustaining our economic prosperity also hinges on the Federal Reserve having good policy. The Central Bank is currently undertaking a review of its monetary policy framework to determine the tools it may need in the future.
Mr. McHenry: (01:05)
Chairman Powell, I raise the concern that we have regulatory policy, this impinging upon your capacity...
( FEDERAL_RESERVE, GROWTH ) top
(Read more) top See ( ECONOMY , POLICY , GROWTH )
(Read more) top See ( FED , FEDERAL_RESERVE , GROWTH )
( FEDERAL_RESERVE, GOVERNMENTS ) top
(Read more) top ... that we wouldn't want to make equally sure that state and local government also had access to credit as well." And you mentioned that you didn't have the authority to lend to local and state governments. Madam Chair, I'd like to submit for the record Section 14, 2B, of the Federal Reserve Act asserting that the feds, actually do have the authority to buy municipal debt.
Ms. Waters: (01:48:26)
Without...
(Read more) top See ( FED , GOVERNMENTS )