At one point on Wednesday traders were pricing in slightly less than a quarter point hike in 2019 after Powell said in a speech that the fed funds rate was "just below" neutral.
Traditionally, stock markets love lower interest rates.
Even in the face of such headwinds, policy makers said a resilient banking system shielded with larger stores of capital and cash cushions would be "less likely to amplify the effects of falling asset prices".
Participants discussed the need to change the statement's wording to more sharply emphasize that future policy decisions would be based on incoming economic data.
Factually, Mr Powell's remarks on Wednesday and in October are both true.
"By clearly and transparently explaining our policies, we aim to strengthen the foundation of democratic legitimacy that enables the Fed to serve the needs of the American public".
Just on Tuesday, Fed Vice Chair Richard Clarida, in a speech to numerous same economists and investors in NY, used precisely the same language to describe the policy rate as "just below" the range for neutral. That would bring it about to the bottom of the September range of neutral-rate estimates from 15 governors and regional Fed presidents, who gave figures from 2.5 percent to 3.5 percent.
He did not specifically cite the criticism he has faced from the White House, but he defended the Fed's recent moves and said "there is no preset policy path".
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Currently, the Federal Open Market Committee forecasts three quarter-point hikes for next year after a December increase, which is virtually guaranteed.
While Powell said Fed officials are monitoring these risks, they are not, on the whole, too anxious about them. It followed several weeks of market volatility that some investors had blamed on uncertainty over the Fed's intentions, among other things. Some analysts are now saying the Fed may decide to raise rates only once or twice in 2019. But signs of a slowdown overseas and almost two months of market volatility - including a sharp selloff last week - have clouded an otherwise mostly rosy US picture in which the economy is growing well above potential and unemployment is the lowest since the 1960s.
"I'm not dancing or partying right at the moment", he said, adding that the Fed has talked about gradual rate hikes "for a very long time".
Furthermore, Powell states that the economy is growing "well above most estimates" and that "there is a great deal to like about this outlook". The first is that we will hear from Powell more often. Responding to the interviewer's comment that he had considered Powell would be a "low-rate person", Trump said: "Well, let's see what happens with Jay Powell".
But keeping rates "too low for too long" could create other risks, including accelerating inflation, he said.
Minutes of the November meeting show policymakers ticking off a series of issues, including a tightening of financial conditions, global risks, "and some signs of slowing in interest-sensitive sectors", that had begun weighing on their view of the economy.
Mr. Powell flagged rising indebtedness and deteriorating loan quality among some USA businesses as top vulnerabilities within the US financial system, but otherwise described such risks as moderate.