Powell Suggests Fed to Go Ahead With Rate Hikes Despite Market Turmoil
- New Fed chair says he’s also alert to financial stability risk
- Powell’s comments first in public since stock market shakeout
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Federal Reserve Chairman Jerome Powell suggested that the U.S. central bank would push ahead with gradual interest-rate increases even as it remains on the lookout for threats to the financial system in the wake of the recent stock market rout.
“We are in the process of gradually normalizing both interest rate policy and our balance sheet,” he said Tuesday in the text of his ceremonial swearing-in speech in Washington, adding, “We will remain alert to any developing risks to financial stability.”