Powell Says Solid Economy Supports Further Fed Rate Increases

Fed chief says keeping labor markets too tight could raise inflation expectations

Federal Reserve Chairman Jerome Powell said sturdy U.S. economic growth has built a strong case for continuing to gradually lift interest rates, and he warned against policy complacency now that the central bank has nearly achieved its employment and price stability goals.

“Today, with the economy strong and risks to the outlook balanced, the case for continued gradual increases in the federal-funds rate remains strong and broadly supported among” participants on the Fed’s rate-setting committee, Mr. Powell said Wednesday.

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