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News & Press: Industry

Powell Suggests That The Fed Will Continue To Raise Rates

Monday, August 27, 2018   (0 Comments)
Posted by: Alyce Ryan
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AICC, through its membership in the Council of Manufacturing Associations, is pleased to present the "Manufacturing Economic Daily Newsletter” from the NATIONAL ASSOCIATION OF MANUFACTURERS (NAM).

 

The AP (8/24, Crutsinger) reported Fed Chairman Jerome Powell during a Friday speech in Jackson Hole, Wyoming “signaled...that he expects the Fed to continue gradually raising interest rates if the U.S. economic expansion remains strong.” However, Powell “added that while annual inflation has risen to near the Fed’s 2 percent target rate, it doesn’t seem likely to accelerate above that point,” which the AP said “suggests that he doesn’t foresee a need for the Fed to step up its rate hikes.” The AP added that Powell “sketched a positive picture of the U.S. economy and said the Fed’s incremental approach to raising rates has so far succeeded.” In a front-page article, the Wall Street Journal (8/24, A1, Timiraos, Subscription Publication) reported Powell said the main risks facing the Fed are “moving too fast and needlessly shortening the expansion, versus moving too slowly and risking a destabilizing overheating.” He added, “The current path [is] taking seriously both of these risks.”