Powell: We do not need to be in a hurry to adjust policy

Powell will begin speaking in Congress at 10 am ET but the Fed pre-released his opening statement.

• The US economy is strong overall
• Policy is well-positioned to deal with risks and uncertainties
• Can maintain policy for longer if economy remains strong and inflation does not move towards 2%
• Can ease if labor market unexpectedly weakens or inflation falls more quickly than expected

Ahead of his speech, the market was pricing in 41 bps in easing this year and I don’t see anything here that would move it. These comments echo what he said after the Fed decision.

This article was written by Adam Button at www.forexlive.com.