Fed Chairman Jerome Powell stated that inflation is above Fed expectations and that they aim to reduce inflation to 2 percent.
The US inflation and interest rate process, which is also closely related to the crypto money market, has been showing developments recently. Especially the banking problems had created rumors that the tightening in the markets would come to an end.
Fed Chairman Jerome Powell said in a speech today that inflation is still above Fed expectations. Powell said the Fed is sticking to its 2 percent target.
Fed’s Powell: Inflation Still High
The US inflation, announced on May 10, came in at 4.9 percent on an annual basis. The latest inflation, which decreased significantly compared to 6.4 percent annually in the first month of the year, enabled the markets to focus on the next process.
Although US inflation continues its downward trend, this is not enough according to Fed Chairman Jerome Powell. Making statements today, Powell thinks that inflation is still at higher levels.
In addition, Powell spoke about the situation of US banks, which is constantly on the agenda. Powell stated that the banking system in the country has a structure to overcome the difficulties.
Stating that they are aware of the effects of inflation, Powell said that high inflation creates difficulties. In addition, Powell underlined that in his efforts to reduce inflation, the policy rate may not increase as much as thought.
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