Mohamed A. El-Erian , Columnist

Six Quick Takeaways From Powell's Testimony

Markets parsed the new chair's comments to discern whether the Fed would stick to three rate hikes this year or opt for four.

February 27, 2018 at 8:47 PM UTC

By Mohamed A. El-Erian

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

His first go-around.
Photographer: Chip Somodevilla/Getty Images

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In a wide-ranging discussion with lawmakers on the House Financial Services Committee on Tuesday, Federal Reserve Chairman Jerome Powell painted a relatively optimistic picture of the U.S. economy even as he pointed to balanced risks to the “strong” outlook.

He dampened concerns about negative spillover effects to the economy from the recent spike in market volatility, reiterated prior policy guidance for a further “gradual increase” in policy interest rates, and signaled his commitment to cognitive diversity to enhance good decision-making. More specifically: