Interest rates unlikely to go up this year

Federal Reserve Chairman Jerome Powell says interest rates will likely not be going up this year as inflation stays in check and millions of Americans remain in need of assistance as the nation rebuilds from the damage caused by the Covid-19 pandemic. The central bank is committed to keeping loose monetary policy in place, Powell noted.

 “I think it’s highly unlikely that we would raise rates anything like this year,” Powell told CBS “60 Minutes” journalist Scott Pelley in an interview broadcast Sunday evening. 

“I’m in a position to guarantee that the Fed will do everything we can to support the economy for as long as it takes to complete the recovery.”

 “We don’t have the answer to everything,” he continued, “but the job that we do for the benefit of the public is incredibly important, and we do understand that if we get things right, we can really help people. If the people who are at the margins of the economy are doing well, then the rest of it will take care of itself.”

 “We and a lot of private sector forecasters see strong growth and strong job creation starting right now,” Powell said. “Really, the outlook has brightened substantially.”

The Federal Reserve continues to closely monitor inflation levels. Powell said he would “like to see it on track to move moderately above 2% for some time. When we get that, that’s when we’ll raise rates.”

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