Fed Chairman Jerome Powell reiterated Friday that the US central bank remains committed to bringing inflation down to 2%, saying economic data indicates this will take time.
“So far, the data continues to support the committee’s view. [de política monetária] that reducing inflation will take time,” Powell said at a public event in Washington.
However, Powell acknowledged that the “banking tensions” that arose in early March, with the collapse of some banks, “possibly meant that the (reference) rate did not need to increase as much as it would” if there were no crisis.
“Of course, the extent of this is very uncertain,” he added.
The Fed chair reiterated that the committee is strongly committed to returning inflation to the 2% target.
“We believe that failing to reduce inflation would not only prolong the pain, but would ultimately increase the social costs of returning to price stability, causing even greater damage to households and businesses,” he added.
Powell gave no hint on whether the Fed’s next meeting, in mid-June, will continue to raise interest rates or if there will be a pause.
In April, the inflation rate fell again in the United States, standing at 4.9%, one tenth less than in the previous month.
At the beginning of May, the Fed decided to raise its interest rate by 25 basis points, placing it between 5% and 5.25%.
Source: TSF
