Federal Reserve Chairman Jerome Powell said Thursday his commitment to keep interest rates low for the foreseeable future, even despite his hope for a strong economic recovery.
“When the time comes to raise interest rates, we certainly will, and that moment, by the way, is not now”, The head of the central bank explained during a question and answer session presented by Princeton University.
During his speech, Powell has spoken about how the Fed has handled the challenges brought on by the Covid-19 pandemic, as well as its expectations for what is to come.
Powell has emphasized the Fed's new approach to inflation in which will not increase rates even if unemployment falls below levels that historically would have been considered a warning sign for future price pressures.
"That would not be a reason to raise interest rates, unless we start to see inflation or other imbalances that threaten the achievement of our mandate," he explained.