His comments set aside any concerns about an impending slowdown.
"The base scenario remains favorable," he said Powell in comments prepared to deliver to the Joint Economic Commission of Congress, a panel that includes members of the House of Representatives and Senate.
His comments were similar to those he made at his October press conference after the Fed reduced the cost of credit for the third time in the year and noted that the central bank would no longer reduce them again unless the economy shows a significant deterioration.
Despite "notable risks" that include the slowdown in global growth and the consequences of the trade war between EUnited States and China, "my colleagues and I see a sustained expansion of economic activity … as most likely," he said. Powell in your comments prepared for the presentation.
However, the opening words of Powell They came with a warning: in the event of a recession, elected officials will need to be prepared to fight it with fiscal policy, and that could be difficult given that the federal debt is on an "unsustainable path."
"High and growing debt … could restrict the will of the tax authorities or the ability to support economic activity during a recession," he said. Powell.