Fed’s Powell sees steady growth, signals pause in rate cuts
WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell expects the U.S. economy to continue growing at a solid pace, though it still faces risks from slower growth overseas and trade tensions.
Powell also says the Fed is likely to keep its benchmark short-term interest rate unchanged in the coming months, unless the economy slows enough to cause Fed policymakers to make a “material reassessment” of their outlook.
In a written statement he will deliver to the Joint Economic Committee later Wednesday, Powell said, “Looking ahead, my colleagues and I see a sustained expansion of economic activity, a strong labor market, and inflation near our symmetric 2% objective as most likely.”
The Fed cut short-term rates last month for the third time this year, to a range of 1.5% to 1.75%.