Economics

Powell Hints Fed Open to Pause, Says Won't Quit If Trump Asks

Says balance sheet roll-off would be part of any reassessment
Fed chief reassures markets that he’s listening to its signals

"There is no preset path for policy," Fed Chair Jay Powell said at the AEA meeting in Atlanta on Friday.(Source: Bloomberg)

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By Jeanna Smialek and Rich Miller

January 4, 2019 at 3:51 PM UTC

Updated on

January 5, 2019 at 5:00 AM UTC

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Federal Reserve Chairman Jerome Powell signaled the central bank could pause interest-rate increases if the U.S. economy weakened and pledged he will stay at his post even if President Donald Trump presses him to resign.

Invoking events of 2016, when the Fed held rates unchanged through most of the year amid financial market turmoil spurred by concerns over slower growth in China, Powell said he’s “listening sensitively to the message that markets are sending” about downside risks.