Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. economy is in a “very good place,” and shrugged off concerns over a recession and the impact of the coronavirus.
Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. economy is in a “very good place,” and shrugged off concerns over a recession and the impact of the coronavirus.
In testimony to the House Financial Services Committee, Powell said he does not believe markets are at risk of talking themselves into a recession.
“I don’t think so and I certainly hope not,” Powell said. “There’s no reason why the expansion can’t continue. There’s nothing about this expansion that is unstable or unsustainable.”
Powell said the U.S. economy is in a “very good place,” pointing to job creation and moderate growth in a sluggish global growth environment. Despite weak manufacturing numbers, Powell said trade-related uncertainties have “diminished.”
Coronavirus risk not yet “material”
The Fed appears poised to hold rates steady at the current range between 1.5% to 1.75%, insisting that only a “material” change in the outlook would push the Fed to make a move on rates.
Powell said the coronavirus-related impacts on the U.S. economy would have to be “persistent” for the Fed to deem it a material change.
