Federal Reserve Chairman Jerome Powell speaks during the "The Economic Outlook and Monetary Policy" panel discussion hosted by the Swiss Institute of International Studies at the University of Zurich in Zurich, Switzerland September 6, 2019. Arnd Wiegmann | Reuters

With the final 2019 meeting of Federal Reserve policymakers just two weeks away, Chairman Jerome Powell signaled that interest rates are unlikely to rise anytime soon, saying Monday that the central bank remains firmly committed to meeting its inflation goals. The Fed considers a 2% inflation rate to be a sign of sustainable growth and a level that keeps interest rates high enough to allow for mobility in the event of an economic downturn. However, inflation has run well below that level for 2019 despite three interest rate cuts over the past four months. In a speech in Providence, Rhode Island, Powell expressed a sense of urgency in meeting the inflation part of the Fed's dual mandate. He said low inflation expectations feed on themselves and make it tougher for the Fed to support the economy.

The chairman said in prepared remarks that "it is essential that we at the Fed use our tools to make sure that we do not permit an unhealthy downward drift in inflation expectations and inflation. We are strongly committed to symmetrically and sustainably achieving our 2 percent inflation objective so that in making long-term plans, households and businesses can reasonably expect 2 percent inflation over time." A symmetric goal means policymakers would be content with inflation running a little above or below 2%. Other Fed officials have said that a period of time above 2% would be fine, with some members suggesting the Fed make an express commitment not to raise rates until the goal is met. Higher rates are used to keep inflation low. The Fed's next policy meeting is Dec. 10-11.

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