3/4, 6:31 PM (Source: TeleTrader)
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Inflation at 2% needed before raising rates - Powell

The Federal Reserve won't consider raising interest rates before the United States reaches maximum employment and the 2% inflation target is reached, head of the central bank Jerome Powell said on Thursday.

"To consider raising interest rates, the Fed would need to see maximum employment, inflation at 2% and headed above that," the chairman stated. Temporary increases in prices in the next year can be expected, but they "certainly won't be enough" to move inflation above 2%, he noted.

Additionally, Powell asserted the Fed "won't raise interest rates to cool the economy just because employment gets high."

Breaking the News / MD