Fed's Powell repeats that US economy remains in 'good place'
Federal Reserve Chairman Jerome Powell reiterated on Wednesday that the U.S. economy remains in a "good place," despite some long-term threats to the outlook.
"While not everyone fully shares economic opportunities and the economy faces some risks, overall, it is—as I like to say—in a good place," Powell said during a "Fed Listens" event in Kansas City. "Our job is to keep it there as long as possible."
He repeated his warning that low inflation, low growth and low interest rates continue to pose a threat to the economic outlook. When interest rates -- which are historically low right now -- are too low, the U.S. central bank has fewer tools to help boost the economy in the event of a recession.
Federal Reserve Chairman Jerome Powell speaks at the National Association for Business Economics conference in Denver on Tuesday, Oct. 8, 2019. (AP Photo/Thomas Peipert)
Currently, policymakers are looking into whether their existing monetary policy tools will be adequate to stop (or soften) the next downturn.
He did not go into further detail about what other tools could be considered, or whether policymakers plan to reduce borrowing costs again during their meeting at the end of October.
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Powell's speech precedes the release of the Federal Open Market Committee's minutes from its Sept. 17-18 meeting later in the day, which are expected to shed light on policymakers' interest rate policy moving forward.