Fed chair Jerome Powell softens line on interest rate rises
- 5 years ago
Federal Reserve Chair Jerome Powell has hinted that the Fed is nearing an end to its interest-rate hikes.
In a speech at the Economic Club of New York on Wednesday, Powell said the benchmark interest rate was nearing a neutral level.
"Interest rates are still low by historical standards and they remain just below the range of estimates of that level that would be neutral for the economy - that is neither speeding up nor slowing down growth."
His comments contradicted what he said early last month, when he said the rate was a long way from neutral.
Those remarks set off a rough period on Wall Street with major indices dropping.
However, his softer tone on interest-rate policy on Wednesday caused stocks to rally, though the dollar fell.
Powell has faced continued attacks from President Trump for gradually raising rates since the Fed chair took office in January.
Trump this week also blamed the recent market sell-off and GM's decision to cut its workforce in part on Powell.
In a speech at the Economic Club of New York on Wednesday, Powell said the benchmark interest rate was nearing a neutral level.
"Interest rates are still low by historical standards and they remain just below the range of estimates of that level that would be neutral for the economy - that is neither speeding up nor slowing down growth."
His comments contradicted what he said early last month, when he said the rate was a long way from neutral.
Those remarks set off a rough period on Wall Street with major indices dropping.
However, his softer tone on interest-rate policy on Wednesday caused stocks to rally, though the dollar fell.
Powell has faced continued attacks from President Trump for gradually raising rates since the Fed chair took office in January.
Trump this week also blamed the recent market sell-off and GM's decision to cut its workforce in part on Powell.