Jerome Powell, Chairman of the US Federal Reserve (Fed), makes statements after the meeting.
Interest rates were increased last year with the Fed’s effort to reduce inflation to 2 percent with the “Şahin Stance”. Fed members were satisfied with the monetary policy, but were in favor of tightening in monetary policy as the targets were not met.
Jerome Powell: Rates Likely to Be Higher Than Previous Forecasts
Federal Reserve Chairman Jerome Powell warned that interest rates could be higher than central bank policymakers expected.
The central bank leader warned of tighter monetary policy ahead, citing data earlier this year that showed inflation had reversed its slowdown in late 2022.
Speaking twice this week on Capitol Hill, Powell said:
“The latest economic data came in stronger than expected, suggesting that the final level of interest rates will likely be higher than previously anticipated. If all the data were to show that faster tightening was necessary, we would be ready to accelerate the pace of rate hikes.”
The speech came as markets were generally optimistic that the Fed could rein in inflation without putting the economy in a ditch. The decisions taken at previous meetings also support this. Powell and participants agree that inflation should be reduced to 2 percent.
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