The modern new association president Jerome Powell, the financial market if there is a storm?

Personal opinion

When a president of the association at a congressional hearing, he/she is usually understood the view is about the interest rate of the Federal Open Market Committee (FOMC). However, in some cases, in the public can see Powell focus on your personal opinion. This evaluation is based on diversity and different public communication method and time association, you Yellen.

Powell has appeared several times lasted three hours in a person's hearing. Prediction of self Association recently published economic, the Congress of the United States two changes can promote growth in the short term package of $150 billion in tax reform to stimulate the economy and the new agreement, which is to improve the budget expenditure level.

"My personal view is that this means that the influence of different propulsion requirements, at least in the next few years," he said.

Then, when you answer the question, to stimulate new packets so that they can raise interest rates more than three times or forecast in December Powell said, "follow my future economic growth has gone from twelve months". I don't want to rush to judgment, but we will consider all since the movement of the".

Why do they do not hesitate to express personal opinions of the new president is an important signal of the need to pay attention to? Powell FOMC center is considered to be optimistic, so you can do it to all members of FOMC will depend on the choice of routes and tighten monetary policy a desire for more.

The reaction of the market

Show Powell, make the market feel unhappy, reduce the Shenzhen Stock bonds in the cause of a rise in interest rates, investors to bet on interest rates will rise faster. Fortunately, you have to tell you the rules of the house, not the main interest in the development of the financial market, you will not worry about these changes in the short term.

According to ticket Powell, one of the factors is an important capital and corporate actions affect their ideas, but this is not the whole economy. Therefore, changes in the market cannot stop them from raising interest rates.

The financial policy function lock

Though Powell agreed to bring the influence of package reform policy has positive economic worries, you are on a tight budget, these countries suffer from long-term, not sustainable in your national debt, although not to alarm behavior.

The future of wages

Powell said that sustainability can make the wage growth rate, the United States put forward the need to increase the labor force. This is an important signal. If Bauer believes that the main reason for wage growth is the labor market to cope with the small, they can solve this problem. But your speech that Congress and President Donald Trump is inadequate capacity, rather than their own.