According to Powell, "there are many years" of strong jobs and low rates of inflation

Business

Jerome Powell: (19459007), Chairman of the Federal Reserve Jerome Powell, said on Tuesday that he was seeing the United States on its way to years of steady growth, but was facing congressional testimony by worried senators that the Trump government's trade policies would already hurt businesses in their districts.

In a written statement to the Senate Banking Committee, and in their response to questions about a possible "war". commercial, "the head of the central bank of US minimized the risks, saying that it would be a positive result if the management negotiations resulted in a world of

But the Dakota Democrat of North, Heidi Heitkamp, ​​said that she was frustrated by the idea of ​​a "short-term pain for a long-term gain," noting that the energy sector in its state was affected by higher prices steel prices because of import duties and farmers fear losing market share because of the retaliatory tariffs imposed on their products

"We can not afford to bury head in the sand," Heitkamp said of the impact. "Let's look at it right now, maybe in a year, and let's say that It's here that we turned the corner and the economy went down. "

While staying away from the criticism of Irrespective of the imposition of Donald Trump especially in China but also to partners in Europe and others, he admitted that tariffs were "certainly" the wrong approach and added that states United States "would feel it in

Powell said that, taking the risk of a trade war by taking the global recovery out of the way, the economy is on the brink of" several years "In a position where the market continues to be strong and inflation is around the 2% target of the Fed.

In a written testimony to the Senate Banking Committee, the President of the Fed not only indicated that he believes the economy is doing well, but that "With an appropriate monetary policy, the market for work will remain strong and inflation will remain close to 2% in the next few years, "he said.

Powell in one of the strongest claims that the Fed is within reach of its goals more than a decade after the United States faced a deep financial crisis and recession.

Interest Rates

The Fed "believes that The best way is to continue to gradually raise the interest rate " in order to follow the strengthening of the economy but do not raise it as high or so fast that it will weaken growth, "he said. 19659009] He did not address his views on the proper pace of tightening or whether As some of his colleagues have argued, the Fed is expected to halt its interest rate hike cycle next year and inflation remains under control.The US central bank is expected to increase his rates twice more this year, rising from the current level of 1.75 to 2%.

Powell will appear before a House committee on Wednesday.

In recent comments, Powell and other officials of the Fed refused to declare "victory" in their efforts to achieve the goal of inflation of 2 percent, although most acknowledged that, with unemployment of 4 percent, their

But the Fed's preferred inflation measure reached 2.3% in May, reaching only 2% after to have excluded more volatile prices of food products and energy.

"Close" to the Fed's goal and "recent data is encouraging," Powell said in describing why he believes the expansion of the near-decade states United States should continue.

Stable financial system, continued global growth and momentum of recent tax cuts and increased federal spending "continue to support expansion," Powell said.

After a good start to the year, growth seems to be accelerated The strength of employment, the rise in after-tax income and household optimism have increased spending consumption in recent months.

Powell was in agreement with the uncertainty surrounding the Trump government's trade policies, which organizations such as the International Monetary Fund ( IMF ) warned that they could containing global growth if tariff negotiations and retaliation from other countries raised prices, reduced demand and disrupted global supply chains. "But it's hard to predict the end result of the current trade policy talks." . Overall, the risks to the economy were "more or less balanced", with the "most likely path to the economy" being continuous gains with employment, inflation moderate and steady growth.