JACKSON HOLE, Wyo.—Jerome Powell, chairman of the Federal Reserve, has responded to criticisms of the Fed efforts to slowly push up rates by defending the central bank’s strategy of gradually raising interest rates, saying it is moving at just the right speed.
Powell and Fed have been criticized from both sides, with some saying the Fed is moving too slowly and raising the risk of the economy overheating, while others say it is moving too quickly and putting the brakes on economic growth. Among those who have been critical of rate increases is President Trump.
But during remarks at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyo., Powell said the Fed is moving carefully to ensure it is neither too fast or too slow.
“I see the current path of gradually raising interest rates as the [Federal Open Market Committee’s] approach to taking seriously both of these risks,” Powell said.
He added he sees “no clear signs” of either a sharp rise in inflation above the Fed’s 2% target or that there is “an elevated risk of overheating.”
“This is good news, and we believe that this good news results in part” from the Fed’s recent policy moves, he said.
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