By Yasin Ebrahim
Investing.com - Federal Reserve Jerome Powell said Wednesday it is "highly unlikely" the central bank would lift rates before 2022 and reiterated that the pace of monthly bond purchases would remain steady until the economy has reached its goals.
"We've said we expect to keep rates where they are until meet three-part test," Powell said at a virtual event organized by the Economic Club of Washington. The three part test includes maximum employment, inflation reaching 2%, and on track to run moderately above 2% for some time.
The Fed's latest projections released in March showed that the central bank would likely keep its benchmark rate steady through 2023. The Fed's ongoing $120 billion bond purchase program would likely be reined in well before a rake hike, Powell said.
Powell's ongoing lower for longer narrative comes even as the fed chief touted an improved economic backdrop.
"We're going into a period of faster growth, more job creation," Powell added.