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The US economy is experiencing “a remarkably positive set of economic circumstances”, according to the Federal Reserve Chairman Jerome Powell. He also noted that sees a little risk that the current economic downturn will deviate.

“There is no reason to think that this cycle can not last for a while, practically forever”, said Jerome Powell.

His comments reconfirm his statement a day earlier that the labor market was not at risk of overheating or accelerating the price pressure. On Tuesday, he also rejected the criticism that Fed representatives underestimated the possibility of inflation pushing the central bank’s target of 2%.

Jerome Powell continues to believe that inflation will accelerate as unemployment continues to decline – a framework known as the Phillips curve. He admitted, however, that wage increases have not stimulated price inflation so far and added that it is “somewhat mysterious” why the tight labor market has not led to a more robust pay rise.

“I would not say it is dead”, said Jerome Powell for the Phillips curve. “Perhaps it is resting. We can not say it has gone”, added he.

Powell said that series of indicators, such as job creation, labor force participation and unemployment, have signaled that the labor market is getting closer to full employment.

The Fed raised its key interest rates last week to a range of 2.00-2.25%. The central bankers presented forecasts after their two-day meeting last week, outlining one more hike this year and three more in 2019. They expect the unemployment rate to fall below 4% in the next three years, but not to accelerate inflation well above 2%.

Jerome Powell also expressed his belief that the US monetary policy is “far from neutral”, meaning the point where interest rates neither stimulate nor slow the growth of the economy. This is an important focus for Fed representatives, some of whom claim that the central bank should stop raising interest rates when the neutral point is reached.

Jerome Powell, however, downplayed the ability to accurately assess the location of the neutral point and said that central bankers should treat it as one of the many factors for the interest rate policy.

The US President Donald Trump this summer criticized the rise in main interest rates.