Jerome Powell sees rates go up a bit more


Jerome Powell, nominated by President Donald Trump to head the Federal Reserve, said he expected the central bank to continue raising its benchmark interest rate and slashing its balance sheet under his leadership.

Photographer: Olivier Douliery / Bloomberg

"Our goal is to maintain a strong labor market with inflation moving gradually towards our goal," Powell said in the text of statements he will deliver on Tuesday at a confirmation hearing before the Committee. Banking of the Senate. "We hope that interest rates will increase a little more and that the size of our balance will be gradually reduced."

Powell also pledged to protect financial stability through the Fed's role as a banking regulator, even when he spoke of refining post-crisis regulation. reforms

"Our financial system is undoubtedly much stronger and more resilient than a decade ago," he said. "We will continue to consider appropriate ways to alleviate regulatory burdens while preserving fundamental reforms."

Powell is likely to face questions from the panel about how he intends to extend the third longest economic expansion in US history. UU And how far will it go? go lightening the burden of the rules imposed on the financial system after the 2008-09 crisis.

Peterson Institute for International Economics – Adam Posen discusses the challenges facing Powell as Fed chairman.

(Source: Bloomberg) [19659003] Where his predecessor, Janet Yellen, inherited a still deeply damaged economy In 2014, Powell will be primarily responsible for preserving the progress made since then. If confirmed, Powell will take office with unemployment close to a minimum of 16 years and inflation below the Fed's 2 percent target.

Powell said that, if confirmed, he will endeavor "to support the progress Continuing the economy towards total recovery. "

" Even when we use the lessons of the past, we must be prepared to respond decisively and with adequate force to new and unexpected threats to the financial stability and economic prosperity of our nation, "he said.

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