Fed's Powell sees risks of removing accommodation too slowly or quickly

WASHINGTON Wed Mar 12, 2014 12:24pm EDT

Federal Reserve Board of Governors member Jerome Powell listens during an open board meeting at the Federal Reserve in Washington December 14, 2012. REUTERS/Kevin Lamarque

Federal Reserve Board of Governors member Jerome Powell listens during an open board meeting at the Federal Reserve in Washington December 14, 2012.

Credit: Reuters/Kevin Lamarque

WASHINGTON (Reuters) - Federal Reserve Governor Jerome Powell said the U.S. central bank faces a "careful balancing" act in trying to remove its monetary policy accommodation at the right pace.

"There are risks from removing monetary accommodation too soon as well as too late," he said in remarks prepared for delivery to the Senate Banking Committee on Thursday. The committee released the testimony on Wednesday.

"Our economy continues to recover from the effects of the global financial crisis, unevenly and at a frustratingly slow pace," Powell said. "The task for monetary policy will be to provide continued support as long as necessary, and to return policy to a normal stance over time without sparking inflation or financial instability."

(Reporting by Timothy Ahmann; Editing by Chizu Nomiyama)

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