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Chairman Powell: Fed is in no hurry to raise interest rates

Added 02-24-21 01:04:02pm EST - “Federal Reserve Chairman Jerome Powell told Congress on Wednesday that the central bank will not begin raising interest rates until it believes it has reached its goals on maximum employment and inflation. Powell also warned that…” - News.yahoo.com

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Posted By TheNewsCommenter: From News.yahoo.com: “Chairman Powell: Fed is in no hurry to raise interest rates”. Below is an excerpt from the article.

WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell told Congress on Wednesday that the central bank will not begin raising interest rates until it believes it has reached its goals on maximum employment and inflation.

Powell also warned that many who had worked in industries hardest hit by the pandemic and ensuing recession will likely need to find different jobs.

As he did before the Senate Banking Committee on Tuesday, Powell told the House Financial Services Committee that the Fed was in no hurry to raise benchmark short-term interest rates or to begin trimming its $120 billion in monthly bond payments used to put downward pressure on longer-term rates.

Financial markets, which had begun to wane Tuesday on fears that higher inflation might trigger an earlier-than-expected tightening of credit conditions by the Fed, rebounded on Powell's comments.

Powell said the Fed did not see any indication that inflation could race out of control. While price increases might accelerate in coming months, Powell said those increases were expected to be temporary and not a sign of long-run inflation threats.

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