From hitting the brakes to hitting the brakes step on the gas. that move Federal Reserve United States of America inside Rate hike to fight inflation this is a real possibility. And so this Tuesday warned Jerome PowellIn the first of his two-day testimony before Congress, the head of the US central bank ready to raise rates to a higher-than-expected level so far and maybe a Faster. This next meeting days are celebrated 21 and 22 March.
Already in February, when the eighth consecutive rate hike was made, but the rate was lowered to a quarter point, after the previous half-point increase and the previous four-three quarters, Powell had warned they were going. “from meeting to meeting” depending on the data. And this Tuesday the message reiterated and made a point. aggressive wayOne that Powell admits”will likely” have an impact on the labor market.has potential stop wage increases and increase unemployment.
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“We still have a long way to go to get inflation back to 2 percent,” he said. possibly turbulentPowell also warned before the Senate Banking Committee. “Recent economic data has been stronger than expected and this shows that the level of interest rates is likely to be higher If all data show that faster tightening is warranted than previously anticipated, increase climb speedtypes”.
despite seeing positive signs slowdown in commodity inflation and forecasting rents to calm down this year, indicators unstoppable based on services Except for housing, which is an index closely followed by the Fed, the latest data show that; strength of the economy Including the creation of 517,000 jobs in January and unemployment falling to 3.4%, a level not seen since 1969. And Powell told the Senate that “strong wage growth is good for workers, but only inflating”.
Powell’s words garnered backlash falling in bagsalbeit a little later.