In his testimony this morning before the Senate Finance committee new Federal Reserve chair Jerome Powell said, There’s “no evidence of the economy overheating.” Today’s economic data have raised doubts in the market about Powell’s conclusion.Â
This morning–before the actual testimony by Fed chair Jerome Powell had ended but after Wall Street had read his prepared remarks–stocks moved ahead on Wall Street’s favorite story, Goldilocks. Powell seemed to be saying that economic growth was getting stronger, Â but that it wasn’t so strong that it would force the Fed to act more quickly. But then as the market actually heard Powell speak, it began to reassess how this story comes out.
This afternoon President Donald Trump nominated Federal Reserve governor Jerome Powell (known as Jay) to replace Janet Yellen as head of the Federal Reserve. Powell, a extremely wealthy Republican who worked in the private equity business, was initially appointed to the central bank’s board of governors by President Barack Obama in 2012.
