New Fed Chair Powell to Raise Interest Rates in Line with Pres. Trump’s Tax Cuts

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Jerome Powell, President Donald Trump’s nominee for chairman of the Federal Reserve, sits in the audience before the start of a Senate Banking, Housing, and Urban Affairs Committee hearing on Capitol Hill in Washington, Tuesday, Nov. 28, 2017. (AP Photo/Carolyn Kaster)

December 11, 2017
OAN Newsroom

Economists expect the incoming Federal Reserve chairman Jerome Powell to continue raising interest rates into the next year.

Powell is set to become the new Fed chair in February when the term of current chair Janet Yellen expires.

His tenure begins as President Trump’s tax cuts are set to take effect.

The GDP is currently growing at above three percent per year, while unemployment is continues its historic 17 year low.

Experts predict the combination of fiscal stimulus and higher fed-interest rates to return the economy on a path to healthy and sustainable growth.

“Even before any prospect of tax cuts, the U.S. economy clearly has strong momentum and actually accelerating into the latter part of the year,” said David Riley, Head of Credit Strategy for Bluebay Asset Management. “Faster growths, lower unemployment means the interest rates should be somewhere higher, going forward.”

Experts also point out that Powell will have to tackle the challenges of low inflation, and weak growth in salaries and wages.