Powell: Fed will continue to increase discount rates

Baku. 29 November. REPORT.AZ/ Jerome Powell who will lead Federal Reserve System (Fed) in February, said he would continue Fed’s current course. 

Report informs citing the Bloomberg, Powell pointed out on the interesting moments during his speech.

Thus, during the speech at the Senate, the Fed head said that it is impossible to maintain discount rate at the current low level. Along with increasing discount rate step by step Powell said Fed’s balance will be reduced in the next 3-4 years.

Powell also predicts that the US economy will increase by 2.5% this year and in 2018.

Also, Powell said Fed closely monitoring crypto currency. Increase in discount rate by 0,25 % in December would be a right decision. Powell also supports the idea of changing Volcker Rule.

Notably, Volcker Rule is a federal regulation that prohibits banks from conducting certain investment activities with their own accounts, and limits their ownership of and relationship with hedge funds and private equity funds, also called covered funds. The Volcker rule’s purpose is to prevent banks from making certain types of speculative investments that contributed to the 2008 financial crisis.