WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell says he believes the central bank’s current pace of gradually hiking interest rates is the right policy and criticism from President Donald Trump has not altered its approach.
Powell says that even with the Fed’s third hike this year, rates are at a low level that is still boosting growth. He says the Fed was prepared to go past neutral to a level that is restraining growth if necessary.
But he notes at the moment rates are a “long way from neutral.”
Powell says he has not spoken to Trump about his criticism of the rate hikes and says he remains focused elements of the economy that the Fed can influence.
He spoke Tuesday at a conference in Washington sponsored by The Atlantic magazine.