Powell Warns Fed Could Raise Rates Further Against ‘Very High’ Inflation

“This is gratifying despite inflation coming down from its peak. still too highPowell said in his keynote address at the Kansas City Federal Reserve’s annual meeting in Jackson Hole.

“We are prepared to raise rates further if appropriate and We plan to hold policy tight until we are confident that inflation is falling steadily. towards our goal,” he added.

In this sense, the Fed Chairman drew attention to the development of monthly core inflation readings in June and July, but emphasized that: “Two months of good data” is just the beginning of what’s needed Build confidence that inflation is steadily declining towards the target.

Therefore, it is not yet possible for Powell to know how long these lows will continue or where core inflation will stabilize in the coming quarters.

What do you think, Current uncertainty makes it difficult for the central bank to balance risks and stresses the need for agile policymaking, as doing too little will fix too high inflation and require work-heavy monetary policy action; Doing too much can also cause unnecessary damage to the economy.

“We will proceed carefully “While deciding whether to tighten monetary policy further or hold it steady and wait for more data,” Powell said, “he promised to continue to do so until the work is done.”

“Despite the most positive results in recent times, the process still has a long way to go,” he added.

The Fed’s Federal Open Market Committee (FOMC), the body that sets US monetary policy, Plans to meet again on September 19 and 20.

At its meeting in July, the US central bank unanimously approved a 25 basis point rate hike, placing interest rates between 5.25% and 5.50%, the highest level since January 2001.