TELETRADER News
8/24/2018, 4:02 PM (Source: TeleTrader)
more TeleTrader news

Powell claims there is no danger of excessive inflation

Jerome Powell, chairman of the Federal Reserve System, stressed most people who want jobs in the United States can find them. In a speech on Friday, he asserted indicators on a broad scale point to further upside for the economy, supporting the case for a gradual increase in interest rates. However, he pointed out there is "no clear sign" that inflation would accelerate too much, after it topped the target 2%, and added "there does not seem to be an elevated risk of overheating."

The top central banker told participants at a central bank symposium in Jackson Hole, Wyoming, that the Federal Open Market Committee would "resolutely do whatever it takes" in case expectations for prices "drift materially up or down or should crisis again threaten." In his view, such approach is more effective than saying: "We will take cautious steps toward doing whatever it takes."

"While the unemployment rate is below the committee's estimate of the longer-run natural rate, estimates of this rate are quite uncertain. The same is true of estimates of the neutral interest rate," Powell stated.

Breaking the News / IT