Federal Reserve Chairman Jerome Powell announced that the central bank is prepared to further increase interest rates if necessary. Powell emphasized the importance of maintaining high rates until inflation reaches its 2% target, despite a recent decline. Addressing economic policymakers in Wyoming, Powell acknowledged the balance between decreasing price increases and the strong performance of the US economy. The Federal Reserve will proceed cautiously in deciding whether to tighten further and is unsure if its benchmark interest rate is sufficient. The bank intends to continue a restrictive policy until it is confident in sustainable inflation progress. The article highlights concerns about the economy not cooling as expected and potential risks to inflation progress. Powell emphasized the need for further progress and a potential economic slowdown to achieve the 2% inflation target. The Federal Reserve is committed to a sufficiently restrictive monetary policy to achieve this goal.
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