The economy is right about where the Federal Reserve wants it, running neither too hot nor too cold, Jerome H. Powell, the Fed chairman, said in a speech on Friday as he argued for caution and risk management.
Powell’s comments, at an annual gathering of leading economists and central bankers in the Grand Tetons, indicate that the Fed’s strategy of moving slowly in raising interest rates is likely to stay in place. He argued for remaining open-minded about just how low unemployment can go or where rates might end up, suggesting the Fed would be guided by data rather than by assumptions.
“The economy is strong,” Powell said, according to prepared text of his remarks. “Inflation is near our 2 percent objective, and most people who want a job are finding one.”
He specifically rejected the fear that inflation might be accelerating beyond the level the Fed seeks, which suggests no abrupt rate increases are on the way. “While inflation has recently moved up near 2 percent, we have seen no clear sign of an acceleration above 2 percent, and there does not seem to be an elevated risk of overheating.”
Read more in The New York Times.