WASHINGTON (AP) – Federal Reserve Chairman Jerome Powell, making his first public comments as leader of the nation’s central bank, told Congress Tuesday that the outlook for the U.S. economy “remains strong” despite the recent stock market turbulence.
He said that bright prospects for growth and employment will allow the Fed to continue raising its key policy rate at a gradual pace. The Fed boosted its benchmark rate three times last year and has signaled that it expects to raise rates another three times in 2018.
In a prepared statement, Powell praised Janet Yellen for the important contributions she made during her four years as the first woman to lead the Fed. He said the two had worked together to ensure “a smooth leadership transition and provide for continuity in monetary policy.”
Referring to the wild swings in the stock market that occurred earlier this month, Powell said the Fed does “not see these developments as weighing heavily on the outlook for economic activity, the labor market and inflation.”
Powell, who took office on Feb. 5, was tapped last November as the new Fed leader after President Donald Trump decided to against offering Yellen a second term. Powell, a Republican, has been on the Fed’s seven-member board since 2012.