More from Powell: adjusting interest rates will always be the Fed's main policy tool
More from Powell: adjusting interest rates will always be the Fed's main policy tool, he said in answering questions. And he added the Fed isn't going to start selling assets. The Fed is looking at a number of different tools and ways to adjust them. On fiscal policy, he said it is providing real support for demand and should continue to do so for a few years, but on a longer run perspective, it's unsustainable. Now is a good time to start putting our house in order. On trade policy, potential tariffs could increase prices, and the question is does it stoke inflation or is it just a one off. So far there's no indication of an impact on prices. A downward sloping yield curve MIGHT mean policy is tight. or it could mean term premiums are negative. There is an empirical regularity between the curve and recession. A lot of factors go into longer rates, while the short end is rising due to policy. The curve is one of a range of factors the FOMC is watching.