Powell Says Fed Would Change Balance-Sheet Runoff Policy If Needed

The transcript discusses concerns about global growth, particularly related to China and trade negotiations, and the uncertainty in policy from Washington. It highlights the tension between strong data and financial market concerns. The speaker emphasizes the importance of risk management in policy-making, noting that there is no preset path for policy and that flexibility is crucial. A historical example from 2016 is provided, where the Federal Open Market Committee (FOMC) adjusted its rate path in response to tightened financial conditions. The speaker concludes by stating the readiness to adjust policy quickly to support the economy, maintain labor market strength, and keep inflation near 2%.

What are the statutory goals mentioned that the policy aims to promote?

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What does the speaker indicate about the potential for policy changes in the current year compared to 2016?

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