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Powell Says Fed May Lift Rates to Levels That Restrain Growth

  • The U.S. is enjoying ‘positive set of economic circumstances’
  • Rates probably still a long ways away from neutral level
Jerome Powell
Jerome PowellPhotographer: Andrew Harrer/Bloomberg
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The Federal Reserve may eventually raise interest rates to levels where they begin to restrain economic growth though that’s still some ways off, Chairman Jerome Powell said.

“Interest rates are still accommodative, but we’re gradually moving to a place where they’ll be neutral,” neither holding back nor spurring growth, Powell said Wednesday at an event in Washington hosted by The Atlantic magazine and the Aspen Institute. “We may go past neutral. But we’re a long way from neutral at this point, probably,” he added.