Federal Reserve Chairman Jerome Powell yesterday gave a glowing assessment of the current US economy. 3 hikes are on the way for the US. That means going forward the FED will need to monitor:
a) Jobs market to ensure there are people working to pay loans.
b) Wage Rate to ensure that people have enough money to afford the interest increment.
Increasing rates without considering if people can pay back their loans are akin to a ticking time bomb. So Powell would need to approach the market differently unlike his predecessor, Janet Yellen, who steadily worked to rev up the economy after the 2008 financial crisis, Powell must ensure that the economy doesn't grow so robustly that inflation takes off.
