On the news program "60 Minutes," U.S. Federal Reserve Chairman Jerome Powell said it is unlikely that the central bank will raise interest rates this year.
"I think it’s highly unlikely that we would raise rates anything like this year," Powell said on the episode which aired Sunday. "I’m in a position to guarantee that the Fed will do everything we can to support the economy for as long as it takes to complete the recovery," he added.
Although the U.S. economy has recovered more than 13 million jobs since the depths of the COVID-19 pandemic, there remain about nine million more people who are unemployed. And Powell said more needs to be done, particularly for people in the lower income brackets who have suffered the most.
"If the people who are at the margins of the economy are doing well, then the rest of it will take care of itself," said Powell.
In its most recent economic projections, Fed officials forecast U.S. gross domestic product (GDP) rising in 2021 by 6.5%, which would be the fastest growth rate since 1984.
Powell said he’s not worried about inflation, which is running around 1.6% now and remains well below the Fed’s 2% target. The central bank has pledged to keep rates low even if inflation would run somewhat above the target 2% rate for a period of time.
