Federal Reserve chairman says Interests rates will remain low for the foreseeable future

Federal Reserve chairman says Interests rates will remain low for the foreseeable future

During a Q & A session hosted by Princeton University, US Federal Reserve Chairman Jerome Powell affirmed his commitment to keep interest rates low. He also expressed hope for a strong economic recovery from the impact of the coronavirus. 

Interest rates to remain low until the Federal Reserve achieves its employment and inflation goals

During the wide-ranging discussion, Powell outlined the Federal Reserve strategies towards handling the challenges brought by the COVID-19 pandemic, and the body’s prediction on what is ahead.

 

In its most recent policy statement, which was issued in December, the policymaking Federal Open Market Committee said it would keep an accommodating stance until it sees “substantial further progress” towards its employment and inflation goals.

 

Powell also stated the government body’s new approach to inflation which involves keeping the interest’s rates low even if unemployment falls below levels that are considered a warning sign for pricing pressures ahead.

 

“That wouldn’t be a reason to raise interest rates, unless we start to see inflation or other imbalances that would threaten the achievement of our mandate,” he said.

Inflation might affect the Federal Reserve’s mandate on low interest rates

Recently, a few Fed officials have warned that inflation could move up sooner than the central bank expects, which might force the removal of some policy accommodation sooner than committee members have forecast.

 

The Fed’s benchmark short-term borrowing rate is anchored near zero, and it is continuing to buy at least $120 billion in bonds each month. Core inflation is running around 1.4%, well below the Fed’s 2% target.

 

Powell added there is hope for the economy even as it currently faces powerful challenges.

 

“We were in a good place in February 2020, and we think we can get back there, I would say, much sooner than we had feared,” he said.

On the same subject

Boosting Business Efficiency: The Impact of All-in-One Management Dashboards on Different Sectors
Boosting Business Efficiency: The Impact of All-in-One Management Dashboards on Different Sectors
In an increasingly competitive business landscape, efficiency is more than a buzzword—it's imperative. The adoption of comprehensive management dashboards has become a game-changer in a variety of sectors, propelling them towards heightened productivity, streamlined processes, and improved...
Unveiling the Science Behind ChatGPT's Remarkable Abilities
Unveiling the Science Behind ChatGPT's Remarkable Abilities
Unveiling the marvels of advanced artificial intelligence and its role in improving human-computer interaction, this article is set to explore the science behind the remarkable abilities of a leading conversational model. As a pivotal development in the field of AI, understanding its intricate...
The reasons why cycling is the best.
The reasons why cycling is the best.
A few years ago, cycling was losing popularity, it was reserved for children, sports enthusiasts, or people who were considered crazy to care about the environment. Today the situation is changing and more and more people are getting back on their bikes. You may want to get back on your bike, but...
How to stop infections spread efficiently?
How to stop infections spread efficiently?
Infections are diseases caused by microorganisms that come into contact with the human body. According to data gotten from research, about 15.5 million people visit the hospital because of infections caused by microorganisms. Although some infections are not life-threatening, most of them are...
Hiring an IT Company to Protect against Cyberattacks
Hiring an IT Company to Protect against Cyberattacks
Digital technology is very helpful for businesses and individuals. It ensures that business owners reach a wider audience and generate sufficient traffic as well as make significant conversions in the long run. However, there is a downside to using the internet for business operations. The problem...
What should I know about mobile casinos?
What should I know about mobile casinos?
Today, online casinos are no longer accessible only with a PC. Indeed, many online casinos have developed mobile applications to allow players to access their casino directly on their Smartphone. Have you heard about the great success of mobile casino and would like to learn more? So what do you...
Top 4 of the most beautiful lakes in France
Top 4 of the most beautiful lakes in France
European country and member of the European Union and space Schengen, France is a country full of many natural and tourist sites, there are several lakes which are suitable for the practice of many water sports. Here is a top 4 of the most beautiful lakes in France ! Lake Annecy Lake Annecy is...
Tesla’s rival—Xpeng- releases new autonomous features to the company’s flagship car
Tesla’s rival—Xpeng- releases new autonomous features to the company’s flagship car
The Chinese electric carmaker, Xpeng motors, has announced a new autonomous driving feature designed to work on highways, as it ramps up to challenge domestic rivals as well as Tesla.   Xpeng is one of China’s electric vehicle start-ups looking to race ahead of its competitors such as Nio and...
Uganda’s leader- Yoweri Museveni has been re-elected for a sixth term
Uganda’s leader- Yoweri Museveni has been re-elected for a sixth term
Yoweri Museveni,76, has been re-elected for the sixth time as leader of Uganda. The leader has ruled Uganda for over 35 years.   His political rival, commonly known as Bobi Wine, has rejected the vote, claiming it was rigged. Bobi wine- a singer-turned-politician, whose real name is Robert...
Russian opposition leader arrested after landing in Moscow
Russian opposition leader arrested after landing in Moscow
Russian police arrested Alexei Navalny, 44, at Moscow’s Sheremetyevo airport on Sunday shortly after his flight from Berlin, Germany landed. The activist, who is widely regarded as the most prominent, and determined critic of Russian President Vladimir Putin, was returning home for the first time...
The CEO of Moderna warns that coronavirus is likely to exist forever
The CEO of Moderna warns that coronavirus is likely to exist forever
Stephane Bancel, the CEO of Moderna—one of the producers of the Covid-19 vaccine-warned on Wednesday that the coronavirus will be around “forever.” He mentioned it during a panel discussion at the JPMorgan Healthcare Conference. Coronavirus will likely be an endemic disease An endemic disease is a...