Q&A from Fed Powell: Economy is very resilient and growing strongly

  • Economy is very resilient, growing strongly
  • Growth is running above its longer run trend. That is a surprise
  • Economy is a story of stronger demand.
  • May be ways economy is less affected by interest rates.
  • Interest-sensitive spending is a showing impact of Fed policy.
  • We see policy working through usual channels
  • I don’t think there is a fundamental shift in how rates affect economy.
  • We are seeing a change in the exchange rate which is disinflationary

This article was written by Greg Michalowski at www.forexlive.com. Source