The strong economic growth of the United States will help the central bank to maintain its gradual raise of interest rates, according to Fed Reserve Chair Jerome Powell on Tuesday. However, Powell also mentioned that Trump’s get-tough policy took risk of decreasing the future economic development if the state will agree to permanently increase tariffs. The head of the Fed presented its monetary policy report to Congress and delivered a positive evaluation for the economy’s forecast. He stated that the economic performance is the reason to withdraw the “extra boost” the country implemented in the past to support the US growth from the Great Recession. While the plan to slow down the rate hike is “running smoothly, told by Powell. The central bank further anticipates for the labor market to maintain its strength and inflation would likely stay afloat the 2 percent target over the next few years. Moreover, private economists believed that the remarks from Powell clearly indicates a hint that the central bank is hoping to sustain its presumed path for another two rate hikes this year.
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