US Federal Reserve Chairman said there was no indication that the US economy is overheating,
At a hearing attended by the U.S. Senate Banking Committee on the same day, Powell said there are still some weak factors in the U.S. employment market. For example, the labor force participation rate of “golden age” (aged between 25 and 54) is still below the pre-crisis level Evidence of rapid wage rise remains unclear.
Powell said the continuing improvement in the job market will not lead to a rapid rise in inflation.
At present, the unemployment rate in the United States has dropped to 4.1%, which is already at or below the level of full employment economists think. However, the inflation rate is only 1.7%, which is still below the 2% policy goal of the Federal Reserve.
Powell stressed that the Federal Reserve will continue to raise interest rates gradually, to promote inflation to the target while ensuring that to avoid overheating the economy.
Powell earlier testified before the House of Representatives that the U.S. fiscal policy has become more active and will stimulate economic growth. Strong overseas demand has provided effective support to the steady growth of U.S. exports.
The current market is expected, given the strong economic outlook in the United States, the Fed may raise interest rates four times this year.
According to reports, the New York Fed Governor Dudley said in Sao Paulo, Brazil, the rhythm of raising interest rates four times can still be considered as gradual. He said fiscal stimulus measures such as tax cuts and increased government budget spending will boost economic growth in the short term, thereby supporting the Fed to raise interest rates further.