“Steady interest rate hikes are the best way to protect the U.S. economy” Said Powell
Jerome Powell, Fed's Chairman, stated in his symposium that a steady interest rate hikes are the best way to protect the U.S. economy
The Federal Reserve’s Chairman, Jerome Powell, stated that a steady interest rate hikes are the best way to protect the U.S. economic recovery and keep job growth as strong as possible and inflation under control, Fed Chair Jerome Powell said on Friday in a high-profile endorsement of the central bank’s current approach to policy.
Jerome Powell used an annual research symposium that was being held in Jackson Hole, Wyoming on August 24, 2018 to explain why his colleagues and he believe that the gradual process remains appropriate. “The economy is strong. Inflation is near our 2 percent objective, and most people who want a job are finding one… If the strong growth in income and jobs continues, further gradual increases in the target range for the federal funds rate will likely be appropriate” said Powell. “I see the current path of gradually raising interest rates as the FOMC’s approach to taking seriously both of these risks.”
The Fed is expected to raise interest rates in September, and perhaps again in December. Then they will continue on what it refers to as “normalization” into 2019.
