Fed's Powell nods to stronger economy, backs gradual rate hike path

WASHINGTON (Feb 28): Federal Reserve Chairman Jerome Powell, in his first public appearance as head of the US central bank, vowed on Tuesday to prevent the economy from overheating while sticking with a plan to gradually raise interest rates.

Testifying before the US House of Representatives’ Financial Services Committee, Powell acknowledged the economy had strengthened recently, a remark that prompted investors to increase bets on four rate increases in 2018.

The Fed’s last round of economic projections in December pointed to three rate increases this year.

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