Powell says Fed still believes rates can go up gradually
WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell stressed on Thursday that the central bank still believes it has room to stay on a path of gradual rate hikes that will allow wage growth to accelerate.
Powell, who rattled markets earlier this week with comments that seemed to indicate faster rate hikes ahead, told the Senate Banking Committee that the central bank has not seen decisive evidence of a strong move up in wage growth or a worrisome rise in inflation. For that reason, he said, the Fed does not feel it needs to speed up the pace of benchmark policy rate increases.