Economics

Powell Downplays Concern About Overheating as Jobless Rate Falls

  • Fed chief says a lot has changed since inflationary 1960’s
  • Case for gradual interest rate rises remains ‘strong’
Jerome PowellPhotographer: Andrew Harrer/Bloomberg
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Federal Reserve Chairman Jerome Powell played down worries that today’s low unemployment rate heralds a return to the high-inflation era begun in the 1960’s and instead saw potential lasting economic benefits from a taut jobs market.

While emphasizing that the case for continued gradual interest-rate increases remained strong, Powell’s comments suggest he sees no need for now to hold back the economy and lift joblessness by sharply tightening credit.