![]() "It is certainly possible we would raise the funds rate at the September meeting if the data warranted, and I would also says it's possible that we would choose to hold steady at that meeting" if that's what the data called for, he added.Īlso read | Taylor Swift's Eras Tour strikes economic records, Philadelphia Federal Reserve reports highest revenue since pandemic "The process of getting inflation back down to two percent has a long way to go," Powell said. The Fed's aggressive campaign of rate hikes, initiated last March, continues as it endeavors to manage rising prices and maintain economic stability. Powell emphasized that decisions will be made on a meeting-by-meeting basis.Ĭhairman Powell reiterated that US inflation is still well above the 2 percent target, and it will take time to bring it back down. Though more rate hikes have gained support among FOMC members, the central bank remains cautious, observing economic indicators and inflation data. These factors increase the chances of the Fed achieving a "soft landing" scenario, curbing inflation without plunging the economy into a recession or causing a surge in unemployment.įederal Reserve Chair Jerome Powell's comments will be under scrutiny for hints on future monetary policy. However, unemployment rates are near historic lows, and consumer spending has bolstered economic growth. While inflation has slightly eased since the pause in rate hikes, it remains above the target. In June, the median forecast hinted at two additional rate hikes this year, but with inflation persisting above the long-term target of 2%, the chances of more tightening measures loom large. The FOMC's statement leaves the possibility of more rate increases on the table, indicating that policymakers are closely monitoring the economic situation. Jerome Powell, chairman of the US Federal Reserve, speaks during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC.(Bloomberg) Eyes on the future The Federal Open Market Committee (FOMC) emphasized that it will continue to evaluate economic data before deciding on further monetary policy actions. This marks the highest level since 2001, as the central bank grapples with soaring inflation. ![]() The US Federal Reserve made a significant move on Wednesday, raising its benchmark lending rate by a quarter percentage point to a range between 5.25% and 5.5%.
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