Powell: Balance between the risks of overheating and the need to maintain the growth

In one of his first speeches as the Fed leader, Jerome Paul talks about the need to balance between the risks of overheating the US economy and sustaining growth.
This confirmed that Powell would continue to pursue the Fed's policy of smooth interest rates hike, which was also led by Janet Yelan.
The rise in interest rates is expected to become a reality despite the addition of incentives resulting from tax cuts and government spending.
The Fed is expected to raise interest rates three times this year, as Powell made no further comments to drive investors and analysts the view that we can see more increases in interest rates.
The Fed will continue to look for a balance between avoiding overheating and bringing inflation to 2 per cent on an annual basis, Powell said in his first report to Congress as the head of the largest central bank in the world.
Powell commented on the good performance of the world and US economies in particular, as well as the fact that the level of inflation is still below 2%.
According to Powell, a gradual rise in interest rates in the future would be good for both Fed goals - to reduce the risk of overheating and to return inflation to target levels.
The Fed is expected to resort to the first interest rate rise under Powell over the next month.

Jerome Powell expects interest rates to rise further

Federal Reserve Chairman Jerome Powell and President Donald Trump's nominee for Fed's head of office expects interest rates to continue rising from their current levels.
According to him, the FED's goal is to maintain a strong labor market and to move inflation to target levels. In this regard, FED expects the interest rates to rise further from their current values ​​and the size of the balance to gradually decrease.
Powell also said that the Fed's objectives would continue to maintain strong financial system, with financial and regulatory reforms being gradually made.
The key question facing Paul is most likely - how the Fed will continue to sustain and stimulate the third longest expansion in US history and how far the planned regulatory relief for the financial system will be stretched.
While Janet Yelan inherited a relatively weak state economy, still aware of the effects of the debt crisis, Powell will inherit a rather strong economy.
Powell also said that if he was appointed to the post, he would continue to support the growth and progress of the economy to full recovery.