Powell speech: Better to act preemptively and not let an economic downturn gather steam

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.

Regarding the policy outlook, Powell argued that, as a general matter, it was better to act preemptively and not let an economic downturn gather steam. Below are some key takeaways, as reported by Reuters.

"Policymakers' understanding of financial risks is far better than before financial crisis, making system more resilient."

"There may be a reason to deploy countercyclical capital buffer in the future."

"On balance, vulnerabilities to the U.S. financial system are moderate."

"Fd could require countercyclical capital buffer if financial risks increase."

"Tariffs paid by consumers are generally a one-time increase, not a driver of higher inflation going forward."