Fed's Powell: Forward guidance provided meaningful support for US economy

FXStreet (Łódź) - Speaking at the Institute of International Finance meeting in London on Friday Federal Reserve's Board of Governors member Jerome Powell suggested that the central bank's forward guidance on rates effectively channeled market expectations, helping to reduce volatility.

“In my view, forward rate guidance has helped reduce medium and longer-term interest rates, and by doing so has provided meaningful support for the economy,” the Fed policymaker added.

Powell also said that rates could remain low for some more time until growth perspectives improve and that the quantitative easing program should be finalized in the fourth quarter of 2014.