Federal Reserve Service (FRS) chief Jerome Powell said the US will continue to raise key interest rates to fight inflation. DEA News.
He noted that officials expect the continued increase in the target range for federal funds to be appropriate.
Powell said inflation is currently well above the long-term target of 2%, the labor market is extremely tight, and the Open Market Commission continues to tighten monetary policy and raise interest rates.
Inflation has been slowing in recent months, but there is a “long and bumpy road” before it drops to 2%, according to the Federal Reserve chief.
Meanwhile, Pippa Malmgren, adviser to former President George W. Bush statedthat tightening of the regulator’s monetary policy is unlikely to cause the indicator to return to the 2% annual target level.
In the second half of last year, inflation in the United States began to decline gradually, including against the backdrop of higher interest rates, but the rise in consumer prices did not come as quickly as expected.