Fed Chair Powell Indicates He’ll Keep Bolstering Growth in Public Debut
His testimony comes at a critical moment in the economy’s trajectory, as global economies are strengthening
and as the Trump administration’s $1.5 trillion tax cuts begin adding economic fuel to the United States..
Investors are eagerly awaiting signs of how the Fed, under Mr. Powell’s leadership, will respond,
and whether it will seek to raise interest rates more quickly than expected.
But some investors believe the central bank could lift its rate four times this year, especially if the Trump administration’s
tax cuts, which took effect in January, provides a larger-than-expected boost to the economy and inflation.
Mr. Powell, a former investor and member of the Federal Reserve’s board of governors under Ms. Yellen, was sworn on Feb. 5 as the
Federal Reserve’s 16th chair, where he is charged with setting the benchmark interest rate that speeds or slows economic activity
WASHINGTON — Jerome H. Powell, the new chairman of the Federal Reserve, painted an optimistic picture of the United States economy on Tuesday and signaled
that he will continue to bolster strong growth during testimony before Congress in his public debut as head of the central bank.
Investors are watching carefully for any indication
that inflation could lift off faster than they had expected — a sign that the Fed might have to raise rates more quickly than it planned and risk choking off economic growth.
Investors widely expect the Federal Reserve to raise its benchmark interest rate in March, to a range
of 1.5 percent to 1.75 percent, with some expecting another quarter point increase in June.