Chairman Powell: "No Interest Rate Hike in the Near Future"

"Enough Tools to Counter Inflation"
"No Concerns Over Debt Spread or Stock Bubble That Could Hinder Economic Recovery"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), drew a line by stating that there will be no interest rate hikes as long as inflation remains low.

Chairman Powell made these remarks on the 14th (local time) during a virtual discussion hosted by Princeton University.

Powell said, "When the time comes to raise interest rates, we will do so. However, rate hikes are not imminent." He anticipated that inflation will occur but added, "We have the tools to respond and will use them."

He also said, "Although the recent economic situation faces challenges, the labor market is on the path to improvement and there is hope."

CNBC reported that despite last week's initial jobless claims soaring to nearly 1 million, Powell evaluated the future economic situation and employment positively.

Powell also stated that he is not worried about concerns regarding debt expansion and the stock market surge. He diagnosed, "Although the global economy, including the U.S., faces challenges, there are no obvious imbalances threatening economic improvement."