Federal Reserve to Hike Interest Rates
U.S. Federal Reserve Chair Jerome Powell said in the latest monetary Congress that the government might be forced to increase interest rates to curb inflation in the country. According to Jerome Powell, they needed to increase interest rates by more than they have been doing in the past months if they needed quick results.
"With inflation well above our longer-run goal of 2 percent and with the labor market remaining extremely tight, the FOMC has continued to tighten the stance of monetary policy, raising interest rates by 4-1/2 percentage points over the past year. We continue to anticipate that ongoing increases in the target range for the federal funds rate will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In addition, we are continuing the process of significantly reducing the size of our balance sheet," Jerome Powell said.
The chairman of the US Federal Reserve said it will take some more time for the country to set the full effects of the positive policies they have been making." It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation," Jerome Powell said.
