What keeps Powell up at night? he didn't really answer that
What keeps Powell up at night? he didn't really answer that. He's relieved at the strength in global growth, and added there are some problems associated with that. The economy is in the best shape it's been in awhile, and he hopes that it's sustained. There were more questions on the labor market and low wages. Powell reiterated that higher productivity is needed for a sustainable increase in wages. He said he expects to see increases in wages as the labor market tightens, but low wages and the low prime age participation rate, to date do suggest maybe the labor market has some slack. The Fed is in the process of discovering the natural rate of unemployment, and inflation. On the latter, the Fed looks to persistent deviations above or below the target, which are undesirable. With that, the testimony ended. He will go before the Senate Banking Committee on Thursday.