Gradual raise in rates expected

WASHINGTON: The Federal Reserve (Fed) pointed to 'solid' US economic growth during the first half of the year in its semi-annual report to Congress, where it also reiterated that it expected to continue to raise interest rates gradually. It is the Fed’s second submission to lawmakers since chairman Jerome Powell took the helm of the Fed in early February. He is scheduled to answer questions on it before lawmakers on Tuesday and Wednesday. Details of the 63-page report were consistent with the Fed’s current outlook detailed at its policy meetings, which is that strong economic growth and low unemployment require rate rises but that a lack of severe inflation pressures means they can remain gradual.  

Published in The Express Tribune, July 15^th, 2018.

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