Powell speech: Market's tepid inflation expectations one argument for lower rates

Additional comments from Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, cross the wires as he continues to speak at the Council on Foreign Relations in New York.

Powell said that he takes the market's apparently somewhat tepid inflation expectations seriously and added that he saw that as an argument for lower rates. Meanwhile, after staging a recovery to 96.36 with the initial reaction to St. Louis Fed President Bullard's hawkish remarks, the US Dollar Index lost its momentum and was last up 0.12% on a daily basis at 96.12. Below are some key takeaways, as reported by Reuters.

"Tariffs are not large enough to be major threat to economy alone, but could hurt confidence or markets more broadly."

"It is too early to prejudge outcome of broader Fed policy review."

"Policymakers are trying to find a credible U.S. inflation framework that the public would act on."

"Mentions of concerns on trade and tariffs in latest Beige Book doubled."

"Inflation expectations are pinned around Fed's 2% target."

"There are many factors weighing on global inflation, wage growth and productivity."

"Fed still has ability to be lender of last resort to solvent institutions in case of a crisis."