More from Powell: the Fed is monitoring several labor market indicators
More from Powell: the Fed is monitoring several labor market indicators for signs of inflation. The four main ones are the ECI, average hourly earnings, the Atlanta Fed's wage tracker, and compensation per hour. About 5 years ago those were clustered around a 2% rate, and are now around 3%, obviously reflecting a pick up. The Fed has monitored other central bank actions, but hasn't seriously considered negative interest rates. He hasn't seen what he had feared, an asset price bubble coming out of the Fed's gradualist policy and low volatility environment, although asset prices are high by historical standards. On risks from emerging markets to global growth, the Fed devotes a lot of thinking on that potential, but only a handful of emerging market countries are facing "significant turmoil." There is some pressure, however, but not a "broad situation." Global growth is still healthy.