U.S. Federal Reserve Chairman Jerome Powell says the central bank will be "patient" when it comes to further raising interest rates.
Powell made the remarks as he delivered the Fed's semi-annual Monetary Policy Report to Congress. In prepared comments, he said the U.S. economy should keep expanding at a slower pace this year. But he warned of growing risks, including a global slowdown, volatile financial markets and uncertainty about U.S. trade policy.
The Federal Reserve Chairman said the central bank will be "patient" in determining when to boost its benchmark policy rate in light of the various "crosscurrents and conflicting signals." He added that any future decisions on interest rates will be "data-dependent."
The Federal Reserve, in December, indicated that it could raise interest hike rates two times this year. But many private sector economists say they now believe the central bank will keep interest rates unchanged until late this year and may not raise them at all in 2019.
Indeed, Powell said that several factors that could slow growth have emerged in recent months.
"Financial markets became more volatile toward year-end, and financial conditions are now less supportive of growth than they were earlier last year," said Powell.
He noted that growth has slowed in major foreign economies too, notably China and Europe, and "uncertainty is elevated" around major policy issues such as Britain's impending exit from the European Union, and ongoing U.S. trade negotiations with various countries.
At its last meeting in January, the Federal Reserve left interest rates unchanged at a range of 2.25% to 2.50% and signaled a move away from further raising interest rates. The U.S. central bank had raised interest rates four times in 2018.
