Powell pledges to remain alert to stability risks

WASHINGTON

Federal Reserve Chairman Jerome Powell said Tuesday that the global economy is recovering strongly for the first time in a decade, but the central bank needs to remain alert to any emerging risks to financial stability.

In brief remarks during a ceremonial swearing-in, Powell said the central bank is in the process of “gradually” raising interest rates and trimming its massive holdings of Treasury bonds.

He said the Fed is seeking to normalize its policies in a way that will extend the recovery and bolster its goals of achieving stable inflation and maximum employment.

“We will remain alert to any developing risks to financial stability,” Powell said in his only reference to the wild swings in the past two weeks in financial markets.