Powell on wage growth: it's hard to trace through changes in wages
Powell on wage growth: it's hard to trace through changes in wages amid corporate tax policy. But in general, lower corporate taxes should lead to higher investment, which in turn leads to higher productivity, and in turn that should boost wages. But it's hard to determine exactly. The Fed needs to be alert to the build up of inflation and in financial imbalances, though analysts're not really seeing such yet. Asset prices are higher, but financial stability picture points to "modest risk" currently. On a flattening,or inverted yield curve, Powell said it's typical for the curve to flatten as the economy strengthens, but it's not likely a harbinger of a recession currently. The Fed doesn't look toward selling assets. On what would cause the Fed to raise rates more than currently expected. Incoming data suggests a strengthening economy, and is giving him more confidence that inflation is starting to move up. He won't prejudge the March FOMC meeting, however.