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9/26/2018, 8:40 PM (Source: TeleTrader)
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Powell: Rates remain low, risks are balanced

Jerome Powell, chairman of the United States Federal Reserve, stressed he and other policymakers are dedicated to sustaining a strong economy. Speaking at a press conference in Washington after lifting interest rates for the third time this year, he claimed "risks to the economic outlook appear roughly balanced." While the Federal Open Market Committee lifted the benchmark, interest rates remain low, Powell asserted.

Turning to the stability of the financial system, he stated the largest banks are held to much higher standards regarding capital reserves and risk than before the crisis. Acknowledging the removal of the phrase that the central bank's stance is "accommodative," the top rate-setter said the shift "does not signal any change in the likely path of policy."

The strategy is "proceeding in line" with the Fed's expectations and there should be further gradual increases in the target range like projected earlier, according to Powell. He said the recent rise in oil prices has pushed inflation "a little above" the target 2% but that the change is seen as "transitory."

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