Fed's Powell: Expect Rates to Rise Somewhat Further

--Remarks Prepared for Senate Confirmation Hearing Tuesday

By Jean Yung

     WASHINGTON (MNI) - Jerome Powell, the White House's nominee to lead the

Federal Reserve, plans to tell senators that interest rates will rise a bit

further and the balance sheet will shrink gradually if the economy develops as

expected at his confirmation hearing Tuesday.

     "If confirmed, I would strive, along with my colleagues, to support the

economy's continued progress toward full recovery," he said in his prepared

remarks released late Monday.

     "Our aim is to sustain a strong jobs market with inflation moving gradually

up toward our target. We expect interest rates to rise somewhat further and the

size of our balance sheet to gradually shrink." 

     Powell also swore to "respond decisively and with appropriate force" to any

threats to the nation's financial stability and economic prosperity. 

     As part of that strategy, he also stressed the importance of preserving the

core banking reforms that have strengthened capital and liquidity ratios after

the financial crisis while seeking "appropriate ways to ease regulatory

burdens." 

     He will take questions from senators shortly after 10 a.m. ET in

Washington. 

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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