2023-06-14 19:43:00
Federal Reserve Chairman Jerome Powell said Wednesday that the bank has come a long way in fighting inflation and that the full impact of monetary tightening will come later.
Powell’s comments came following the Federal Reserve kept US interest rates unchanged but indicated in a new economic outlook that the cost of borrowing would likely rise by another half percentage point by the end of this year given the economy’s strength than expected and inflation slowing.
Powell added that almost all bank officials expect more interest rate hikes this year, and indicated that even with officials not deciding what to do in this regard in the upcoming meetings, the July Federal Open Market Committee meeting may witness another increase in the interest rate. .
Powell stressed the Fed’s commitment to reducing inflation to its targets at 2 percent, noting that it would not be appropriate to cut interest rates during the current year.
He said the bank was fully committed to aiming for the 2 percent inflation target, but cautioned that this still had a long way to go.
The following are the most important of Jerome Powell’s speech:
- We expect more pressure on home prices this year
- Current data on inflation still supports further rate hikes
- Most of the members tend to raise the interest rate more this year
- We expect interest rates to fall by 1% over the next year
- We expect interest rates to decline by 2% by the end of 2025
- Long road to return to 2% inflation
- Our decisions in the upcoming meetings depend entirely on economic data
- We have not yet seen a significant impact of the rate hike on jobs and housing
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