Dovish Fed Chief Powell Delivers What the Markets Wanted

Mario Picone center works with fellow specialists on the floor of the New York Stock Exchange Friday Jan. 4 2019

The stock market has seen stomach-churning declines since October, a development that Trump has blamed on the Fed's continued rate hikes, although the president's trade dispute with China as well as concerns about global economic growth also played a part in the market volatility.

Powell's willingness to be flexible on interest rates was welcome news to investors, many of whom anxious that Fed chair risked cutting off the current economic expansion by continuing to raise interest rates despite signs the USA economy was cooling off a little.

Stocks surged on Friday after the Labor Department reported US firms created 312,000 jobs in December, and Powell said the Fed would be flexible in deciding on any further rate increases.

Stocks have been pressured since mid-December when the Fed raised its benchmark interest rate a quarter-point while issuing a somewhat-hawkish statement despite lowering its rate hike projections from three to two. "We don't believe our issuance is an important part of the story", he said.

"We are in a new world", Mester said, where the obvious need to raise rates has given way to a situation where economic growth is expected to slow, wages are rising on the basis of low unemployment, interest rate sensitive sectors of the economy like housing have ebbed, and the unemployment rate has roughly "stabilized" at a low level.

"The markets are pricing in downside risks. and they are obviously well ahead of the data, particularly if you look at this morning's labor market data", Powell said.

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And all of those devices can be used to buy Apple services, which many see as the company's main revenue driver in the future. Meanwhile, utilities and telecommunications were in the black as investors continued to move to defensive sectors.

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The "G0d" Twitter account describes itself using the words "security researching" and "Satire & Ironie". Bild said it was not clear when the data theft began but said it continued until the end of October.

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On New Year's Eve, a video of the employee, Yasmine James , 20, being battered by a male customer at her place employment in St. Unfortunately for him, the young woman knew how to box , according to Kinie Biandudi , who shared video of the altercation .

The stock rally advanced further after Fed Chairman Jerome Powell indicated at a conference in Atlanta that the Fed may pause from raising interest rates in the coming months. That suggests the Fed won't tighten again in March, she said.

In December, Powell said that the Fed's balance sheet reduction was on "autopilot". Fed watchers have said that the bar is very high for the president to remove Powell "for cause" as the law appears to require, provided Powell decides to fight the dismissal in court. Powell responded with a terse "No" when asked if he would resign if Trump requested him to do so.

Friday's event offered a rare show of public unity by a sitting Fed chairman and his two immediate predecessors, who were asked about Trump's apparent disregard for the institution's independence.

"Everyone would be better off if it was clear that the Fed is making its decisions based on its mandate and on its assessment of the long-term needs of the economy, which I'm completely confident that they will do", Bernanke said. The remarks were received as more dovish than some of Powell's recent comments, which have drawn the ire of President Trump.

The next meeting of the Federal Open Market Committee is set for January 29-30, and Powell plans to hold a press conference after that gathering as he will after each FOMC meeting going forward.

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