The US Federal Reserve chairman has said the central bank will continue to raise interest rates “if appropriate” as inflation remains “too high”.
Jerome Powell told an annual gathering of central bankers that the pace of price rises had fallen from a peak.
However, it remains above the Fed’s 2% target.
However, it remains above the Fed’s 2% target.
US inflation hit 3.2% in the year to July while the key interest rate is 5.25% – the highest in 22 years – and comes after 11 consecutive rate rises since early 2022.
Mr Powell said: “Although inflation has moved down from its peak – a welcome development – it remains too high.
“We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
Mr Powell said the Fed would “proceed carefully”, citing the effects of Russia’s ongoing invasion of Ukraine as one of the factors keeping prices elevated globally.
He also said food and energy prices “remained volatile”, despite headline inflation falling from its high of 9.1% last year.
The US Federal Reserve chairman has said the central bank will continue to raise interest rates “if appropriate” as inflation remains “too high”.
However, it remains above the Fed’s 2% target.
Jerome Powell told an annual gathering of central bankers that the pace of price rises had fallen from a peak.
US inflation hit 3.2% in the year to July while the key interest rate is 5.25% – the highest in 22 years – and comes after 11 consecutive rate rises since early 2022.
However, it remains above the Fed’s 2% target.
However, it remains above the Fed’s 2% target.
US inflation hit 3.2% in the year to July while the key interest rate is 5.25% – the highest in 22 years – and comes after 11 consecutive rate rises since early 2022.
Mr Powell said: “Although inflation has moved down from its peak – a welcome development – it remains too high.
“We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
Mr Powell said the Fed would “proceed carefully”, citing the effects of Russia’s ongoing invasion of Ukraine as one of the factors keeping prices elevated globally.
He also said food and energy prices “remained volatile”, despite headline inflation falling from its high of 9.1% last year.
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