Fed’s Powell: An Another Interest Rate Hike Is Expected In 2017

Powell also said that when the time comes, it would be appropriate for the Fed to progressively reduce the balance sheet. In other words, when the kinetic energy of the powerful, FOMC will begin to shrink the table. Now, however, the Fed’s decisions on the balance sheet is still too early.

  Powell said the United States is approaching full employment, monetary policy is still moderately easy, but the inflation rate is still slightly low.

  Given the uncertainty, it is difficult to estimate fiscal policy. And fiscal policy space, time and comfortable points are quite uncertain.

  Powell believes FOMC rate hike will not affect the presidential Trump potential infrastructure projects and government financing costs. Meanwhile, the Fed should slowly move to the more neutral policy stance.

Powell supports the recent developments in matters relating to derivatives regulation.