Fed chairman mum for now on stock shifts
WASHINGTON — Federal Reserve Chairman Jerome Powell said Tuesday that the global economy is recovering strongly for the first time in a decade, but the central bank needs to remain alert to any emerging risks to financial stability.
In brief remarks during a ceremonial swearing-in, Powell said the central bank is “gradually” raising interest rates and trimming its massive holdings of Treasury bonds.
He said the Fed is seeking to normalize its policies in a way that will extend the recovery and bolster its goals of stable inflation and maximum employment.
“We will remain alert to any developing risks to financial stability,” Powell said.
Powell made the comments during a ceremony witnessed by Fed staffers and members of his family in the atrium of its headquarters in Washington.
Powell took the oath of office the first time Feb. 5, when he succeeded Janet Yellen. The Fed released a brief recorded video message at that time in which Powell pledged to remain “vigilant” to any emerging economic risks.
Butthevideomessageandtuesday’s comments made no specific reference to the recent wild market gyrations. Analysts have said the increased volatility could reflect rising fears in markets that inflation will soon become a bigger threat, prompting the Fed to accelerate the pace of its rate hikes.
Powell is certain to face questions on how the Fed plans to deal with the market turmoil when he delivers the central bank’s semi-annual monetary report to Congress on Feb. 28.