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9/16, 9:29 PM (Source: TeleTrader)
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Powell: Fed has plenty of ammo

Federal Reserve Chairman Jerome Powell said on Wednesday that fed has "plenty of ammo" for controlling the economy and added that after the financial crisis a whole new division of the Fed has been made in order to take care of stability. "I don't think asset purchase and financial stability is a tight one relationship", he stated.

He noted that in the lending world some lenders are worried about underwriting expectations. "Fed is required to only make loans to borrowers who are solvent under emergency lending programs. We want banks to take risks regarding the main street loans," he stated.

Powell said that the likely path is that the expansion will continue but "will take some time. We have 11 million people at the payroll survey and our commitment is not to forget those people," he said adding that the number of jobless claims and its counting is volatile. "The level of initial claims has declined sharply and that is worth noting. It will take some time to get back to maximal employment," he stressed.

He added that he expects the policy to remain accommodative even after Fed lifts off on rates adding that there is still plenty more that can be done to support the economy.

Breaking the News / TF