Fed Chair Nominee Powell's Prepared Remarks: "Will Respond With Force To Threats To Nation's Stability"

Jerome Powell, President Trump’s nominee to head the Fed, has released the text of remarks he’ll deliver Tuesday in a confirmation hearing before the Senate Banking Committee.

Powell said he expected the central bank to continue raising its benchmark interest rate and trimming its balance sheet under his leadership, but had some pointed comments over deregulation, economic stability, and the plunge protection team...

Via The Fed,

Chairman Crapo, Ranking Member Brown, and other members of the Committee, thank you for expeditiously scheduling this hearing and providing me the opportunity to appear before you today. I would also like to express my gratitude to President Trump for the confidence he has shown by nominating me to serve as Chairman of the Board of Governors of the Federal Reserve System. The Federal Reserve has had a productive relationship with this Committee over the years, and, if you and your colleagues see fit to confirm me, I look forward to working closely with you in the years ahead.


Before I continue, I would like to introduce my wife, Elissa, who is sitting behind me. I would not be here today without her unstinting love, support, and wise counsel.


As you know, I have served as a member of the Board of Governors and the Federal Open Market Committee (FOMC) for more than five years, contributing in a variety of capacities, including most recently as chairman of the Board's Committee on Supervision and Regulation. My views on a wide range of monetary policy and regulatory issues are on the public record in speeches and testimonies during my service at the Fed. The Congress established the Federal Reserve more than a century ago to provide a safer and more flexible monetary and financial system. And, almost exactly 40 years ago, it assigned us monetary policy goals: maximum employment, meaning people who want to work either have a job or are likely to find one fairly quickly; and price stability, meaning inflation is low and stable enough that it need not figure into households' and businesses' economic decisions.


I have had the great privilege of serving under Chairman Bernanke and Chair Yellen, and, like them, I will do everything in my power to achieve those goals while preserving the Federal Reserve's independent and nonpartisan status that is so vital to their pursuit. In our democracy, transparency and accountability must accompany that independence. We are transparent and accountable in many ways. Among them, we affirm our numerical inflation objective annually and publish our economic and interest rate projections quarterly. And, since 2011, the Chairman has conducted regular news conferences to explain the FOMC's thinking. Additionally, we are accountable to the people's representatives through twice-a-year reports, testimony, oversight, and audited financial statements. I am strongly committed to that framework of transparency and accountability and to continuing to look for ways to enhance it. In our federated system, members of the Washington-based Board of Governors participate in FOMC deliberations with the presidents of the 12 regional Federal Reserve Banks, which are deeply rooted in their local communities. I am a strong supporter of this institutional structure, which helps ensure a diversity of perspectives on monetary policy and helps sustain the public's support for the Federal Reserve as an institution.


If confirmed, I would strive, along with my colleagues, to support the economy's continued progress toward full recovery. Our aim is to sustain a strong jobs market with inflation moving gradually up toward our target. We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink. However, while we endeavor to make the path of policy as predictable as possible, the future cannot be known with certainty. So we must retain the flexibility to adjust our policies in response to economic developments. Above all, even as we draw on the lessons of the past, we must be prepared to respond decisively and with appropriate force to new and unexpected threats to our nation's financial stability and economic prosperity--the original motivation for the Federal Reserve's founding.


As a regulator and supervisor of banking institutions, in collaboration with other federal and state agencies, we must help ensure that our financial system remains both stable and efficient. Our financial system is without doubt far stronger and more resilient than it was a decade ago. Our banks have much higher levels of capital and liquid assets, are more aware of the risks they run, and are better able to manage those risks. Even as we have worked to implement improvements, we also have sought to tailor regulation and supervision to the size and risk profile of banks, particularly community institutions. We will continue to consider appropriate ways to ease regulatory burdens while preserving core reforms--strong levels of capital and liquidity, stress testing, and resolution planning--so that banks can provide the credit to families and businesses necessary to sustain a prosperous economy. In doing so, we must be clear and transparent about the principles that are driving our decisions and about the expectations we have for the institutions we regulate.


To conclude, inside the Federal Reserve, we understand that our decisions in all these areas matter for American families and communities. I am committed to making decisions objectively and based on the best available evidence. In doing so, I would be guided solely by our mandate from the Congress and the long-run interests of the American public.

Thank you. I would be happy to respond to your questions.

Powell is likely to face questions from the panel over how intends to extend the third-longest economic expansion in U.S. history and how far he’ll go in lightening the burden of rules imposed on the financial system following the crisis of 2008-09. Where his predecessor, Janet Yellen, inherited a still-deeply damaged economy in 2014, Powell will be tasked mainly with preserving the gains made since. If confirmed, Powell will take over with unemployment near at a 16-year low and inflation below the Fed’s 2 percent target.

Bloomberg's Michael Regan notes:

Jerome Powell's prepared remarks for his Senate confirmation hearing tomorrow are hitting the tape, and it's safe to say there are no surprises.


He said interest rates should rise "somewhat further" and the Fed under his leadership would weigh deregulation while keeping "core reforms." It's an odd time of day to try to suss out the market's take on news like this, but these remarks seem to confirm what we already know about Powell.


As such, it's hard to imagine there would've been too much reaction even if they came out in the middle of the day.


J S Bach peddling-fiction Mon, 11/27/2017 - 17:33 Permalink

"I am committed to making decisions objectively and based on the best available evidence. In doing so, I would be guided solely by our mandate from the Congress and the long-run interests of the American public."What a joke.  To begin with, the "mandate" should come from the Constitution first and foremost - NOT the corrupted congress - and THIS would nullify the very existence of the Federal Reserve System forthwith.  So, if this windbag had an ounce of integrity, his first "act" would be to eliminate the usurious criminal institution which he is appointed to lead.

In reply to by peddling-fiction

Consuelo peddling-fiction Mon, 11/27/2017 - 17:43 Permalink

  You got it.   His careful choice of words indicate a very real sense of desperation regarding what is happening in terms of China, Russia, Iran and host of other nations fixing to align themselves with an alternative payment system, and what may lie right around the corner as a result.  These clever bastards know that Big Time Inflation is heading our way, and there won't be a damned thing they can do about it, even if they were to raise rates to 20%...

In reply to by peddling-fiction

lil dirtball Consuelo Mon, 11/27/2017 - 18:57 Permalink

> desperation

I mean, you're joking ... right? (((These))) people will never know what desperation feels like in their lifetimes. They are multi-layer in$ulated from any unpleasantnesses in life. (((They))) don't give two shits what happens as a result of their machinations, as long as it doesn't effect them or theirs or any of their plans. And, nothing effects them or their plans. There is nothing left to chance - and if something does, perchance, go wrong - they have enough m0ney to fix it, buy it or kill it.

Desperation. Ha ha.

In reply to by Consuelo

ludwigvmises Mon, 11/27/2017 - 17:17 Permalink

Why on earth is a Fed member concerned about the nation's stability? That's not their job! My god why does the Fed want to micro-manage our entire country? I mean what's next, maybe they want to run the military too?

TeethVillage88s Mon, 11/27/2017 - 17:21 Permalink

What the hell. If he want to fight he can go to Israel. Or Syria. What a bozo.

"Fed Chair Nominee Powell's Prepared Remarks: "Will Respond With Force To Threats To Nation's Stability"

- Napolian Syndrome
- Watchs a lot of Schwartzenauger Movies?
- Big Marvel Comix fan?

opport.knocks Mon, 11/27/2017 - 17:39 Permalink

Price stability and threats to national security. So if Bitcoin is a negative with respect to both, and the Fed does nothing about Bitcoin encroaching on its monopoly, then it must mean that Bitcoin is a backup plan or a beta for a future project, likely developed by the CIA.

rickv404 Mon, 11/27/2017 - 17:22 Permalink

"...even as we draw on the lessons of the past, we must be prepared to respond decisively and with appropriate force to new and unexpected threats to our nation's financial stability and economic prosperity..."Turn the guns on yourself, president and congress, first.

jimmy c korn Chippewa Partners Mon, 11/27/2017 - 18:22 Permalink

Just saw her in an interview with Greg Hunter on his youtube channel a few days ago. Greg's comments on the interview below.Bitcoin’s rapid rise in value is sending a warning signal, according to former Fed insider Danielle DiMartino Booth. She says, “To me, Bitcoin is a reflection of panic. It’s a reflection of people trying to get money into a safe place knowing the major governments of the developed world have got their printing presses running 24/7. It is a reflection of anxiety in fiat currencies and the fact it’s not practical to go back to a gold standard. What scares me about Bitcoin is the central bankers are studying it to figure out how the blockchain works. . . .They are going to be controlling our spending with blockchain technology that is being perfected in the crypto currency universe. . . . I am not a gold bug, but we do know that in times of corrections that there is no place to hide in traditional asset classes that you can get at your Merrill Lynch brokerage. Gold and silver in the precious metals complex are the only places to hide and get true diversification and safety.”https://www.youtube.com/watch?v=L1NPNCcJEm0

In reply to by Chippewa Partners

wisebastard Mon, 11/27/2017 - 17:25 Permalink

i almost feel terrified, like in the movie Idiocracy when president Camacho begins shooting a fully automatic assault riffle to get the people to calm down.....

house biscuit Mon, 11/27/2017 - 17:28 Permalink

Mr. Powell was subsequently noted off the record to claim that he would also "respond with unprecendented violence" to those claiming he was too dovish on monetary policy, leading to speculation regarding his well-being...