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Federal Reserve Chairman Jerome Powell said today that he believed the US economy was still in good shape and that recent government spending and tax programs would boost the product. gross domestic product for three years. "I think the economy is really in a good state," Powell said in a radio interview with the market
"When you cut taxes and increase spending, you'll probably see more money." ;economic activity". 19659002] "There will probably be significant support for (…) economic activity probably for at least the next three years," he added.
On the other hand, a senior Federal Reserve official said Thursday The US inflation rate could convince him to support two further interest rate hikes in the remainder of 2018, although that he sees no reason to rush the conclusions because of the risk of investment in the yield curve of the Treasury debt
The Fed has already applied two rate increases so far in 2018 and at least one other adjustment is planned.
"I am open to a fourth increase this year if we have managed to see inflation start to accelerate," Philadelphia Fed chief Patrick Harker said at a news conference. an economic forum in Idaho
. However, he added that "more evidence" is needed to support an increase This year, the measure could push Treasury yields to two years to bring them above ten-year bond yields.
"If there is a risk that the yield curve will reverse, then" There is no compelling reason at this time for the need for a fourth increase unless inflation begins to accelerate rapidly, "he said.
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