Fed chair signals cautious approach to tightening despite very strong US jobs report
Federal Reserve chair Jay Powell offered an upbeat assessment of US economic prospects following a strong jobs report on Friday, easing fears of a 2019 downturn that had spooked investors in recent weeks. Mr Powell said markets had moved “well ahead of the data” in pricing in risks to the US economy, following a sharp sell-off on Thursday and deep losses for equity investors during December. “US data seem to be on track to sustain good momentum into the new year,” the Fed chairman told a conference in Atlanta. Along with his comforting words about the health of the world’s largest economy, Mr Powell said the Fed would take a “patient” approach to monetary policy tightening, contributing to a rally which sent the S&P 500 up by 3.4 per cent in New York.