Economics
Powell Put? Fed Chief Says Market Volatility Can Affect Economy
- Fed chairman responds to questions during House testimony
- Powell says central bank may have balance-sheet target soon
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Federal Reserve Chairman Jerome Powell, asked if there’s a “Powell Put” in financial markets, said the U.S. central bank will pay attention to financial-market volatility if it threatens economic stability.
Patrick McHenry, the ranking Republican on the House Financial Services Committee, asked the chairman during a hearing Wednesday to respond to claims that there is a “Powell Put,’’ meaning the Fed will change the course of interest rates in response to volatility -- in effect underwriting risk-taking.