Interest rates may be raised further to reduce inflation: US Fed chair

13 Nov '23

1 min read

Pic: Adobe Stock

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US Federal Reserve chair Jerome Powell recently said that interest rates may be raised further, if needed, to reduce inflation to its long-term 2-per cent target.
"We know that ongoing progress toward our 2-per cent goal is not assured: Inflation has given us a few head fakes," he said.
US economic growth is strong and the labour market stays buoyant.

US Federal Reserve (Fed) chair Jerome Powell recently said that interest rates may be raised further, if needed, to reduce inflation to its long-term 2-per cent target.

"We know that ongoing progress toward our 2-per cent goal is not assured: Inflation has given us a few head fakes," Powell told a conference in Washington.

The US central bank had recently voted to hold interest rates steady at a 22-year high for a second consecutive meeting.

Though inflation has more than halved since peaking last year, the US central bank seems to be still concerned about the prospect of its re-acceleration, according to domestic media reports.

Powell later indicated that he felt the Fed was ‘probably’ at a point where its monetary policy was ‘significantly restrictive’.

The country’s economic growth is strong and the labour market stays buoyant, though it has shown some signs of slowing in recent times.

ALCHEMPro News Desk (DS)

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