Fed Likely To Keep Rates Unchanged

Fed likely to keep rates unchanged

US Federal Reserve Chair Jerome Powell has indicated the central bank will leave interest rates unchanged, saying the world's largest economy shows signs of strength and will likely see continued growth.

Powell testified before a congressional panel on Wednesday.

He said the Fed sees the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with their outlook.

He also said historically low unemployment boosted wages while reduced interest rates increased residential investment.

The Fed has carried out rate cuts in the past three consecutive meetings leading up to last month.

He indicated that policymakers would take a break from the reductions for now.

But Powell does see risks in the trade confrontation between the US and China.

He said the Fed would respond accordingly to new developments in the situation.

Powell's remarks reinforced a growing view among market players that the Fed will leave rates unchanged at its next policy meeting in December.