Federal Reserve Chairman Powell reiterated in an interview on Thursday (12th) that it is appropriate to raise interest rates by 50 basis points (2 yards) in each of the next two interest rate meetings, but he admitted that the Federal Reserve wants to achieve a soft landing for the U.S. economy Very challenging.
The U.S. Senate overwhelmingly confirmed Powell as Fed chairman on Thursday, the same day Powell said in an interview with Marketplace Public Radio that controlling inflation is his top priority, but it won’t be easy.He cannot promise a so-called soft landing for the economy.
“A soft landing is really just getting back to 2 percent inflation while keeping the labor market strong, which is very challenging right now for several reasons, but we think there are ways to get there,” Ball explained. .”
The Federal Open Market Committee (FOMC) decided to raise interest rates by one rate at its March meeting, and announced another two rate hikes in May in an attempt to curb inflation. The market expects the June meeting to rise by another 2 yards, but economic data released in recent days has caused the market to worry that the Fed may adopt a more aggressive strategy.
The United States announced on Thursday (12th) that the producer price index (PPI) continued to heat up in April. On Wednesday, the consumer price index (CPI) in April increased by 8.3% year-on-year, continuing to record a new high in nearly 40 years, indicating that the Federal Reserve achieved 2%. The path to the inflation target will be difficult and slow, possibly persuading the Fed to consider even steeper rate hikes.
Powell tried to calm short-term concerns in the market on Thursday. Powell reiterated: “If the economy does not perform as expected, it is appropriate to raise interest rates by 50 basis points in each of the next two interest rate meetings.Fed not actively considering bigger rate hikes。」
He pointed out that it is uncertain how much impact a faster rate hike will have, but it is now clear to the market that the Fed is determined to use tools to restore price stability.
