“Jackson Hole: The Fed held interest rates steady and signaled it expects to remain on hold for the foreseeable future”-– Paul Ebeling
Federal Reserve Chairman Jerome Powell said Friday that the US economic recovery appears to be making progress, warning that it needs to be careful not to tighten its policy before enough Americans can return to work.
He still expects high inflation to be “transitory,” expecting factors like unusually high used car prices to come down soon.
On interest rates: The Fed chairman emphasized that the timing of any interest rate hikes are not to be linked to the timing of taper, noting that the Fed still has “much ground to cover” before wanting to raise rates from near-Zero.
“We have articulated a different and substantially more stringent test for liftoff,” Mr. Powell said.
He went on to say that the economy has shown “more progress” since the Fed’s last policy-setting meeting in July, where the Fed held interest rates at near-Zero.
Have a happy, healthy weekend, Keep the Faith!