The president of the US Federal Reserve, Jerome Powell, admitted this Wednesday new increases in interest rates in the coming months, despite the pause in June, based on economic data.
The position is defended by “almost all members” of the Fed’s monetary policy committee (FMOC), the body that decides on interest rate hikes, which they consider “appropriate to raise a little more” until the end of the year.
In a speech to the US House of Representatives, Powell noted that at last week’s meeting, “considering the speed and distance traveled,” FMOC members “judged it prudent” not to change interest rates.
At the hearing, Powell assured that the Fed will continue to make its decisions “meeting by meeting, based on all the data” of which it is aware and its implications for the outlook for economic activity and inflation.
Powell appears every six months in the House of Representatives and the Senate, where he delivers a speech and answers questions from elected members.
The Fed chairman’s presence comes a week after the decision, on June 14, to halt interest rate hikes this month.
Thus, rates remain in a range between 5% and 5.25%, the highest since 2007, after a series of 10 consecutive increases with the aim of lowering inflation.
In the conference that followed the announcement, Powell had already admitted the possibility of further promotions, if necessary.
“We remain committed to bringing inflation down to our 2% target and keeping long-term inflation expectations well anchored. Reducing inflation is likely to require a period of below-trend growth and some easing in the labor market.” , acknowledged this Wednesday the president of the Federal Reserve.
Source: TSF
