The US Federal Reserve hints at stopping interest rate hikes “temporarily”

2023-05-20 08:40:00

According to the “Associated Press”, Powell’s remarks came during a conference held by the Federal Reserve in Washington, on Friday.

AndHe said Powell: “We have come a long way in tightening monetary policy, and the stance of monetary policy has become restrictive.”

“We face uncertainty regarding the late effects of the rate hike, and regarding the extent of the credit tightening resulting from the recent banking pressures,” he added.

“Now that we’ve come this far, we can afford to monitor the data and how the forecast evolves, to make accurate assessments.”

“While financial stabilization tools have helped calm conditions in the banking sector, they are likely to affect economic growth, employment and inflation,” Powell said.

And he added, “As a result, we may not need to raise interest rates as much as we would have to do to achieve our goals .. Of course, this extent is not very clear.”

The US central bank has raised interest rates by 5% in just over a year, as it wages its biggest tightening campaign in decades to quell soaring inflation.

The US Federal Reserve meeting is scheduled to be held on June 13-14.

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