WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell is signaling that he expects the Fed to continue gradually raising interest rates if the U.S. economic expansion remains strong.
Speaking to an annual conference of central bankers in Jackson Hole, Wyoming, the Fed chairman says the central bank recognizes that the path of inflation is so uncertain that it generally needs to strike a balance between being supportive of growth and being restrictive.
Powell says this gradual approach is the wisest policy for the Fed in trying to navigate between the risks of raising rates too fast and thus “needlessly shortening the expansion” and moving too slowly and risking an overheated economy.
