While the economy and labor markets are improving, Federal Reserve Board Governor Jerome Powell said Wednesday he hasn't decided if he'll back an increase in short-term interest rates at the next Federal Open Market Committee meeting.
Despite "reasonable" economic growth and better labor markets, inflation remains below the Fed's 2% target. However, he said in a televised interview, that he'll concentrate on labor market data until the Sept. 16-17 FOMC meeting. He added there is more labor-market slack in the economy than the jobless rate indicates.
"Fortunately I don't have to figure [whether to vote for a rate increase] now," Powell said. "So nothing has been decided, and I haven't made any decisions about what I would support. Certainly the committee hasn't."
Although he was unsure if next month is the proper time to raise rates, Powell said on CNBC, the "time is clearly coming."
Financial assets aren't in bubble territory, he said, and rate hikes should take a shallow path.
