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Will the Fed raise rates this year? (Statement by President Powell)

The president of the Federal Reserve of the United States (Fed), Jerome Powell, declared that the American economy will begin to grow much faster and that they expect employment to accelerate and that the economy is at a “tipping point”.

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Powell commented on the agenda of the “60 Minutes” program organized by CBS television.

Asked if the US economy is still in jeopardy, Powell replied, “What we’re seeing now is an economy that is really looking toward a tipping point.”

Powell, stating that widespread vaccination against the new type of corona virus (Covid-19) and strong support from monetary and financial policy are effective in this, stated that they expect the economy to grow much faster and employment to slow. speed up.

“RISK OF DISEASE SPREAD”

Noting that the outlook has improved significantly, Powell said “the main risk to our economy right now is the re-spread of the disease.”

Powell stated that they expect very strong growth in the second half of this year.

Stating that they have seen an unusual recovery, Powell said that some parts of the economy have fully recovered and sectors such as travel and entertainment have not recovered much yet.

Stating that the economy is performing better than feared, Powell reiterated that they will continue to support the economy until the recovery is complete.

“THIS YEAR IT IS NOT POSSIBLE TO INCREASE INTEREST RATES”

Powell, who also did inflation assessments, said they could afford to wait for inflation to kick in before raising interest rates.

“When we do, we will raise interest rates,” Powell said, recalling the average inflation target of 2 percent over time. speak.

On a question about interest rates, Powell said: “I think it is unlikely that we will increase interest rates this year.”

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