Fed Chair Powell says he wouldn't resign if requested

US stocks rally after strong jobs data, dovish Fed comments

In Atlanta, Powell said Fed policy is flexible and the central bank is "listening carefully" to markets. The question is how long that pacification strategy will work.

"However, this idea that has been percolating in the market that round the corner, the United States maybe looking at recession risk, that makes no sense because monetary policy all around the world are still more accommodative and the USA economy is growing faster than it long run trend and the Fed policy is still accommodative, the real Fed funds rate is barely above zero", Glassman said in an interview with CNBC-TV18.

"With the market pricing out any Fed hikes for this year, will a strong NFP print this morning see dealers reversing their decision that the Fed is ready to abandon its rate hike plans when employment growth is still so strong?" he questioned.

The gains, also driven by strong job creation data, reversed sharp falls from a day earlier, extending the recent rollercoaster ride in markets.

All three major USA stock indexes more than regained ground lost in Thursday's broad sell-off, rising more than 3 percent and setting up the indexes to post weekly gains at the end of the first, tumultuous week of the new year.

Powell's remarks reassured investors who have anxious the Fed might raise rates excessively, but Jason Schenker of Prestige Economics suggested the Fed could. This also may have had a positive effects on markets.

"It's hard to square recession worries with the strongest job growth we've seen in years", said Alec Young, managing director of global markets research for FTSE Russell.

"We are always prepared to shift the stance of policy and to shift it significantly" if needed, Powell said, speaking on a panel alongside former Fed chiefs Janet Yellen and Ben Bernanke.

"That's quite welcome", Powell said. The Fed said in December it anticipated raising rates twice in 2019.

Asked if he would resign if Trump asked him to do so, Powell responded with a short "no".

"Markets are expressing concerns about global growth in particular and trade negotiations", Powell said at an event in Atlanta. But some investors have anxious that that process could push long-term rates higher at a time when the economy was slowing. "The Fed understands that what they attempted to communicate last month was inartful, that they didn't get the right message across, and Powell tried to reset".

Global stocks are jumping Friday as investors welcomed news of trade talks between the US and China next week and the USA government reported a big increase in hiring in December. "Can we wait?", Cleveland Federal Reserve Bank President Loretta Mester said in an interview with Reuters.

He argued that the amounts involved are not big - the Fed is reducing its bond holdings by a maximum of $50 billion per month - and that the central bank's actions on that front were not a major reason for the financial turbulence last quarter.

"We wouldn't hesitate to change it and that would include the balance sheet". Taking part in the same panel discussion as Paulson on January 5, he said he was neither anxious nor shocked by the recent sell-off in equity prices.

"Nothing's been scheduled, I would say that meetings between presidents and Fed chairs do happen", he told moderator and New York Times reporter Neil Irwin. Treasury Secretary Steven Mnuchin refutes the allegation that Trump wishes to relieve Powell of his duties. That looks to be a lot higher bar than implied by Powell's remarks.

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