Powell says gradual rate hikes means wages can move higher
WASHINGTON (AP) — The Latest on Federal Reserve Chairman Jerome Powell's testimony to the Senate Banking Committee (all times local):___11:50 a.m.
Powell says that the gradual path the central bank is pursuing in raising interest rates will allow wage growth to continue to accelerate after years of lagging behind.
Powell says that the Fed does need to keep in mind the dangers of moving rates up too slowly and allowing inflation to move up to unwelcome levels. But he says he is not seeing any threats of dangerous inflation increases at the moment.
Powell says the goal of the Fed is to prolong the current economic recovery by moving its key interest rate up at a gradual pace.