Fed Chairman Powell reiterated the Fed's GRADUAL path
Fed Chairman Powell reiterated the Fed's GRADUAL path in his speech on The Outlook for the U.S. Economy. The sentiment was consistent with what analysts heard at the March 21 press conference, as well as with the Monetary Policy Report. Further gradual rate increases are the best way to promote the Fed's goals. And he supported a patient approach to policy. Risks to the economy are generally balanced, he added but the Fed must balance between hiking too quickly or too slowly. He reiterated that, a few measures, including moderate wage gains show the labor market is not excessively tight. Many gauges, however, show the labor market is near full employment. The labor market is expected to remain strong. Inflation is expected to stabilize around 2%. There's nothing incendiary in the comments to suggest any shift in the policy stance.