Federal Reserve Chairman Jerome Powell showed he will be guided by the U.S. economy's performance, rather than the theories and models his predecessors have relied on to set monetary policy for the past three decades.
Fresh from overseeing his first policy-setting meeting and its first interest rate hike of 2018, Powell signaled he won't try to guess the limits of the labor market or the growth-boosting effects of Republican tax cuts.
His message: He'll know the economy is changing when he sees it. “There is no sense in the data that we are on the cusp of an acceleration of inflation,” Powell told reporters on Wednesday in Washington. “We have seen moderate increases in wages and price inflation, and we seem to be seeing more of that.”
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