Powell on Fighting Inflation

Federal Reserve Chairman Jerome Powell said today Wednesday that the bank has come a long way in fighting inflation and that the full impact of monetary tightening will be seen later.

Interest Rates to Rise

Powell’s comments came after the Federal Reserve left U.S. interest rates unchanged but indicated in a new economic outlook that borrowing costs are likely to rise another half a percentage point by the end of this year, given a stronger-than-expected economy and a slowdown. inflation.

Further Interest Rate Hikes Expected

Powell added that almost all bank officials expect further interest rate hikes this year, and pointed out that even if officials do not decide what to do in this regard at upcoming meetings, the July meeting of the Federal Open Market Committee may see another increase in interest. bid.

Commitment to Inflation Target

He said the bank was fully committed to meeting its 2 percent inflation target, but warned that it was still a long way off.