Fed Chair Jerome Powell’s speech in Paris on Tuesday was largely similar to what he’s said recently. He reiterated the pledged to “act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.”

In the baseline outlook, Fed expected growth to “remain solid, labor markets to stay strong, and inflation to move back up and run near 2 percent”. However, “uncertainties about this outlook have increased”, particularly regarding “trade developments and global growth”.

Powell also noted the influences between monetary policies in different countries, “financial markets, trade, and confidence channels”. And he noted, “pursuing our domestic mandates in this new world requires that we understand the anticipated effects of these interconnections and incorporate them into our policy decision making.

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