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The President of the Federal Reserve (EDF), Jerome Powell said Thursday that he believes that the economy of United States remains in good condition and that the government's recent tax and expenditure programs would increase the country's gross domestic product for three years.
"I think the economy is really in a good state," Powell said in a radio interview with Marketplace. "When you cut taxes and you increase spending, you will probably see more economic activity."
"There will probably be significant support for […] economic activity probably at least for the next three years," he added.
Powell did not comment on the interest rate policy directly in a nearly 20-minute conversation that will air on Thursday, and the market delivered a transcript before the broadcast.
Powell's comments are known when the Fed attempts to raise interest rates at a rate that helps control inflation, but without going as far or too fast to slow down the pace of inflation. economy.
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The US central bank is also under pressure from the Donald Trump government – a package of taxes and expenses that has added short-term growth – and tariffs and trade disputes that many authorities EDF fear going to hurt in the economy
Powell said that it is still unclear how trade disputes will end, but he felt that tax programs will stimulate the economy for several years. The estimate is in the high part that other central bank officials have indicated.
In its most recent forecasts, the Fed authorities estimated that GDP would accelerate at an annual growth rate of 2.8%. but it is expected to slow to 2.4% in 2019 and 2% in 2020, before reaching its potential long-term growth rate of 1.8%.
The US economy grew by 2% 3% last year.
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