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"Rates remain low, and my colleagues and I believe that this gradual return to normal helps support this strong economy for the long-term benefit of all Americans," said Thursday the president of the US Federal Reserve, Jerome Powell.
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Alexandre Drago / Reuters
WASHINGTON – Federal Reserve Chairman Jerome Powell reiterated his positive appreciation of the US economy, noting that borrowing costs remain low after officials raise interest rates for the third time this year.
In a brief speech prepared for handover Thursday at Capitol Hill, Powell said the Fed's quarter-point rate hike on Wednesday was the final step toward returning to normal levels in a healthy economy.
While noting that the benefits of economic growth are not reaching all Americans and that the Fed's ability to meet many challenges in the US is limited, he said policy-makers
"Rates remain low, and my colleagues and I believe that this gradual return to normal helps support this strong economy for the long-term benefit of all Americans," Powell said.
Twelve of the 16 leading Fed officials are once again planning to raise their short-term interest rate from 2% to 2.25%. Nine officials plan to increase their rates by at least three times in 2019.
Ten years after the financial crisis, the US economy is growing at a steady pace and unemployment and inflation are low, Powell said.
With increased capital and liquidity requirements in major banks and other measures, the financial system is stronger and safer than before the crisis, he added.
"We continue to work to maintain these fundamental improvements while ensuring that regulation is both effective and efficient," Powell said.
Write to Paul Kiernan at [email protected]
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