WASHINGTON, Nov. 13 (Xinhua) -- The current stance of U.S. monetary policy is "likely to remain appropriate" as long as the U.S. economy stays on track, U.S. Federal Reserve Chairman Jerome Powell said on Wednesday at a hearing held by the Joint Economic Committee of Congress.
"We will be monitoring the effects of our policy actions, along with other information bearing on the outlook, as we assess the appropriate path of the target range for the federal funds rate," Powell said.
Noting "policy is not on a preset course", Powell said the Fed would respond accordingly "if developments emerge that cause a material reassessment of our outlook."
When asked "do you anticipate maintaining the current Fed rate through the next year," the central bank chief responded "I know I wouldn't say that at all," and then turned to his prepared speech and basically repeated the remarks above.
Analysts said Powell's remarks suggest that the central bank is unlikely to adjust interest rates anytime soon as long as the U.S. economy remains along its present path.
The U.S. economy expanded at an annual rate of 1.9 percent in the third quarter of the year, slightly lower than the 2-percent growth rate in the second quarter, according to the Commerce Department.
The Fed has already lowered rates three times since July, amid growing risks and uncertainties stemming from trade tensions, weakness in global growth and muted inflation pressures.
Despite an overall favorable baseline for the U.S. economy, the Fed chairman pointed out several "noteworthy risks" to the economic outlook, including sluggish growth abroad, trade developments and muted inflation pressures.
"Tariffs, but to an even greater extent, uncertainty around future trade policy" has been weighing on business sentiment, and it's probably part of the global slowdown in manufacturing, in business investment, in exports and in trade, Powell said.
At the Congressional hearing, the Fed chairman also highlighted the issue of rising federal debt, noting that it's on an unsustainable path. "The debt is growing faster than the economy" in nominal terms, Powell said.
"Over time, this outlook could restrain fiscal policymakers' willingness or ability to support economic activity during a downturn," he said. "In addition, I remain concerned that high and rising federal debt can, in the longer term, restrain private investment and, thereby, reduce productivity and overall economic growth."
