The Fed highlights the "strength" of the US economy and reiterates the gradual rise in rates

WASHINGTON.- The economic growth of the United States was solid during the first half and Reserve Feder continues to project a gradual rise in interest rates, The US central bank reported Friday in an optimistic half-yearly report to Congress.

In the second presentation of the Fed to legislators since 1945 Jerome Pow he badumed the presidency of the US central bank in early February. Powell is expected to answer legislators' questions about the report on Tuesday and Wednesday.

The details of the 63-page report were consistent with the Fed's current outlook in its monetary policy meetings, considering that strong economic growth and low unemployment require rate increases, but the absence of severe inflationary pressures means that increases may continue to be gradual.

"In the first half of this year, economic activity in general seems to have progressed at a good pace," the Fed said in its report, adding that the economy continues to grow. Be supported by a positive consumer confidence and In addition to household wealth, strong economic growth abroad and expansive financial conditions at the local level.

Thus, the Fed "anticipates that further gradual increases" in interest rates will be appropriate while trying to continue to fuel an economic expansion that is now the second longest ever recorded.

The Fed said the Trump government 's tax relief program has likely contributed to a rebound in consumer spending since a slow start to the year and is likely to modestly boost economic growth this year.

Powell also referred to a relatively optimistic outlook for the US economy in an interview on Thursday, in which he stated that he believes the country's economy remains in a "very good position". place "and that recent tax and government programs will boost gross domestic product for perhaps three years.

The Fed has raised interest rates seven times since the beginning of the monetary tightening cycle in December 2015 and expects two further rate hikes by the end of the year.

Several members of the US central bank have expressed concern that trade disputes with key allies and with China could dampen business investment, and Powell said Thursday that high tariffs on products and services could harm the economy.