Powell: The American economy is in excellent shape

Federal Reserve Chairman Jerome Powell said yesterday in his conference at the end of the US Stock Exchange session that the economy is strong, but next year there will be winds under the uncertainty of how much and at what speeds interest rates can rise.

Overall, Powell is optimistic about the US economy, but he listed several potential challenges, including: global growth, declining fiscal stimulus, and the late impact on the economy of the eight interest rates since 2015.

The Fed is aware that these conditions further complicate the Fed's way of adapting the economy to its policy. Rising interest rates are already strongly tied to several segments of the economy, such as housing, and financial conditions are tightening. However, the labor market is booming and inflation is at the FED target of 2%.

In the light of the releases we are still witnessing, Powell said they are watching markets closely, the economy and business are reacting to rising interest rates. For them, markets are extremely important, but the Fed is more focused on the real economy.

Source: Bloomberg Finance L.P.

Photo: Used with permission of Bloomberg Finance L.P.

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