Federal Reserve Chairman Jerome Powell looks likely to continue his second term heading the central bank. In a speech during his re-nominations, he declared that the US economy is “healthy enough and in need of tighter monetary policy.”
Powell said he expects a series of interest rate hikes this year, along with other reductions in the financial help the Fed has been providing during the pandemic era.
“As we move through this year … if things develop as expected, we’ll be normalizing policy, meaning we’re going to end our asset purchases in March, meaning we’ll be raising rates over the course of the year,” he told committee members. “At some point perhaps later this year we will start to allow the balance sheet to run off, and that’s just the road to normalising policy.”
Powell was praised for the way he has handled the economy but was also criticised over perceived ethical lapses from central bank officials.
The Fed is also tapering its monthly bond purchases and they feel the economy has a strong jobs picture.