Powell expects "a few years" of stable employment and low inflation in the United States :: Investor.bg Jerome Powell, dismissing the risk of a trade war to harm the global recovery, said that the US economy was at the beginning of a period of "several years"

In his testimony prepared for the Senate Banking Commission today, the Fed's Governor is not only confident that the economy is doing well, but that the time is steady. Mr. Growth can continue as long that the Federal Reserve to make the right policy decisions.

" In an appropriate monetary policy, the labor market will remain strong and inflation will remain around 2% over the next few years," he said. Powell's is one of its strongest guarantees so far that the Fed is close to its lofty goals over a decade after the United States experienced a deep financial and financial crisis. a recession

To move forward, it is necessary to gradually increase the "The base rate at a pace that coincides with an expanding economy, but not as high or as fast as to weaken growth," said Powell.

He did not explain exactly what is the right pace. tightening or he thinks, as some of his colleagues think, the Fed should stop raising rates next year if inflation remains under control. The central bank is expected to raise interest rates twice this year, from its current target of 1.75% to 2%.

million. Powell will answer senators' questions today after making their statement and Wednesday. Powell and other Fed officials have recently been reluctant to declare a "victory" in their 2% inflation efforts, although most recognize that in the case of unemployment their goal 4% job was achieved

However, the Fed's preferred inflation measure and 2.3% in May, and exactly 2% if the volatile food prices and the price of food. energy was excluded.

Inflation is "close" to the Fed's goal and "recent data is encouraging," Powell said. which continues to think that the expansion of the US economy will continue

Still low interest rates, a stable financial system, sustained global growth and tax reform and federal budget support higher "continue to support enlargement," Powell said. ] After a stable start to the year, growth accelerates sharply And 'the sharp increase in employment, the increase in after – tax profit and household optimism has increased consumer spending in recent months. The Fed's governor has reported uncertainties regarding the trade policies of President Trump's administration, which organizations such as the International Monetary Fund have warned threatened global growth if continued increases in US tariffs and reciprocal measures of other countries raise prices, weaken demand and disrupt global supply chains

" It is difficult to predict the outcome of ongoing trade policy discussions "Overall, the risks to the economy are" somewhat balanced "and" the most likely direction of the economy "is the continued growth of the economy. employment, moderate inflation and steady growth