The new Federal Reserve or Bank of America head Jerome Powell pledged on Tuesday to maintain important progress made in banking regulations since the global financial crisis and continue to raise interest rates gradually.
Powell, who took over the leadership position of the Central Bank on February 5, when Wall Street tumbled, also said the central bank will continue to reduce its bond holdings by more than 4.5 trillion dollars.
"We are in the process of gradually normalizing the interest rate policy and balance sheet with the intention of extending the recovery and achieving our goals, "Powell said in his address to the inauguration ceremony.
He formally took control of the Central Bank last week, replacing Janet Yellen, the only woman who ever led the central bank in 100 years of Bank history Central.
Powell praises Yellen and his predecessor Ben Bernanke for having made a policy of m oneter by supporting recovery and employment while "strengthening and securing" Powell's financial system is widely seen as more reliable for the deregulation agenda of President Donald Trump, but Powell insists he prefers a balance between oversight and regulation while preventing new risk buildup.  The central bank will "maintain a significant milestone in financial regulation while ensuring our policies are as efficient as possible," Powell said and adding, "We will remain vigilant of the growing risks to financial stability." [my/jm]