BUSINESS US Fed Chairman says current monetary policy 'likely to remain appropriate'

BUSINESS

US Fed Chairman says current monetary policy 'likely to remain appropriate'

Xinhua

00:14, November 14, 2019

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Jerome Powell, chairman of the US Federal Reserve (File photo: VCG)

WASHINGTON, Nov. 13 (Xinhua) -- U.S. Federal Reserve Chairman Jerome Powell said on Wednesday that the current stance of monetary policy is "likely to remain appropriate" as long as the U.S. economy stays on track, according to his prepared remarks provided to the Joint Economic Committee of Congress.

"We will be monitoring the effects of our policy actions, along with other information bearing on the outlook, as we assess the appropriate path of the target range for the federal funds rate," Powell said.

Noting "policy is not on a preset course," Powell said the Fed would respond accordingly "if developments emerge that cause a material reassessment of our outlook."

Analysts said Powell's remarks suggest that the central bank is unlikely to adjust interest rates anytime soon as long as the U.S. economy remains along its present path.

The U.S. economy expanded at an annual rate of 1.9 percent in the third quarter of the year, slightly lower than the 2-percent growth rate in the second quarter, according to the Commerce Department.

The Fed has already lowered rates three times since July, amid growing risks and uncertainties stemming from trade tensions, weakness in global growth and muted inflation pressures.

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