Powell says U.S. Fed to remain alert to financial stability risks

WASHINGTON, Feb. 13 (Xinhua) -- U.S. Federal Reserve chairman Jerome Powell said on Tuesday that the central bank will remain alert to risks to financial stability in the wake of recent market rout.

"We will remain alert to any developing risks to financial stability," said Powell at a ceremonial swearing-in event on Tuesday.

This is the first open remarks Powell made since he took office as the head of the central bank last Monday. Since then, the U.S. stock market has entered a bumpy road, with major stock indexes dropping over 10 percent.

On Tuesday, Powell stressed that the Fed will "preserve the essential gains in financial regulation while seeking to ensure that our policies are as efficient as possible."

He also reiterated that the central bank will continue gradually raise interest rates and rewind its balance sheet, against the background of strong global recovery.

Powell didn't address his view about the impact from the recent market rout.

Some Fed officials recently said that the market declines would not affect their forecast for economic outlook.

Cleveland Fed president Loretta Mester said on Tuesday at an event in Ohio that the economy will work through the market turbulence. "The underlying fundamentals supporting the economy are very sound," she said.

She expected that the central bank would continue to raise interest rates three times this year, the same pace as in last year. Enditem