Fed Chairman Powell: US interest rates have been low for a long time
It will be some time before the umbrella of central banks in the US starts raising interest rates. Jerome Powell, who chairs the Fed, emphasized at a meeting on Wednesday that there should be inflation that should “hold” at around 2 per cent and the labor market recovering before interest rates hike.
Previously, policymakers talked about keeping current low interest rates from 0 to 0.25 percent through 2023. Powell emphasized that some Fed executives were even talking about 2024. “Markets focus a lot on what we think is the economic outlook. “I will focus more on the results we described,” Powell said.
He went on to say that the United States is entering a period of rapid economic growth and job creation, and that the greatest risk is a new spike in Covid 19 infections due to virus variants that may be more difficult to treat. The Fed Chairman said it is wise to continue to wear face masks at the moment and to maintain social distancing.
At last month’s policy meeting, the Fed saw no reason to mess around with its ongoing support measures. This promise led to record highs in US stock markets, among other things.
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