U.S. economic growth has been solid during the first half of the year and the Federal Reserve continues to expect to raise interest rates gradually, the central bank said on Friday in an upbeat semi-annual report to Congress.
It is the Fed’s second submission to lawmakers since Chairman Jerome Powell took the helm of the Fed in early February. He is scheduled to answer questions on it before lawmakers on Tuesday and Wednesday.
Details of the 63-page report were consistent with the Fed’s current outlook detailed at its policy meetings, which is that strong economic growth and low unemployment require rate rises but that a lack of severe inflation pressures means they can remain gradual.
