Fed policy report flags strong economy, uncertain policy outlook

Fed notes stabilized and strong task market

Report flags raised monetary appraisal levels

(Adds discuss productivity, Fed policy rules)

By Michael S. Derby

Feb 7 (Reuters) - The Federal Reserve's latest Monetary Policy Report to Congress, launched on Friday, drapia.org was positive about the state of the economy but alerted about some concerning elements of the financial system.

The report, which comes ahead of next week's statement before Congress by Fed Chair Jerome Powell, said main bank authorities remain dedicated to getting inflation back to 2% and noted that when it pertains to rate of interest policy modifications officials "will thoroughly evaluate inbound data, the developing outlook, and the balance of threats."

The release explained the general economy as succeeding amid a strong and better-balanced task market and decreasing inflation pressures.

The Fed report said the monetary system is broadly speaking "sound and resilient." But it likewise kept in mind "appraisals remained high relative to principles in a series of markets, including those for equity, business debt, and residential property."

It likewise said "appraisal pressures increased rather from already high levels" while flagging that "vulnerabilities connected with financial leverage remained notable."

The report did not appear to recommend any broad risk to the economy from the financial system and said that "credit continued to be broadly available" to mid-sized and big organizations, many homes and local governments. Credit was "fairly tight" for users.atw.hu small companies and forum.pinoo.com.tr those with credit concerns.

When it pertains to overall loaning levels, total debt levels for families and non-financial companies "continued to trend down to a level that is really low relative to that in the past 2 decades."

The Monetary Policy Report, which comes twice annual, strikez.awardspace.info was based upon data available to the main bank since Thursday. The report generally sums up subjects currently well known to Fed watchers and market individuals.

The report comes as the Fed deals with an extremely uncertain environment due to massive policy modifications now pondered or underway from President Donald Trump.

The main bank was able to lower its rates of interest target by a full percentage point last year in the middle of easing inflation pressures. Future cuts, akropolistravel.com nevertheless, hikvisiondb.webcam are highly uncertain as Trump pursues trade and workforce policies that many believe will increase inflation at a time when cost pressures remain above target. Some in the Fed have pointed straight at the government as a source of uncertainty restricting the assistance officials can offer about the monetary policy outlook.

The Fed report had actually limited talk about the prospects for Trump trade policies however did note "some market participants likewise pointed to possible boosts in U.S. tariffs on imports as a factor pushing the dollar higher in recent months."

The release likewise said strong efficiency might help the economy grow more rapidly in the future without creating inflation pressures. The Fed discovered that emerging artificial intelligence technology had not done much yet to goose productivity but said the influence "may grow as AI use becomes more prevalent."

While the report didn't have much guidance about the outlook for financial policy, drapia.org it did acknowledge that the present 4.25-4.50% federal funds target rate range was constant with the level suggested by policy guidelines. Officials do not use rules to set policy however view them as factors worth considering as they identify the ideal level for short-term rate of interest. (Reporting by Michael S. Derby; Editing by Andrea Ricci)