Federal Reserve Chairman Jerome Powell on Tuesday pledged to continue the battle against inflation, arguing that the U.S. economy "does not work for...
Federal Reserve Chairman Jerome Powell on Tuesday pledged to continue the battle against inflation, arguing that the U.S. economy “does not work for anyone” without stable prices.
Over the past two policy meetings, the Fed has slowed the pace of its interest rate increases from a 75 basis point hike in November to only 25 basis points in early February. Two Fed officials have disclosed that they had pushed for a 50 basis point hike at the February meeting. This has sparked speculation that the central bank could accelerate the pace of rate hikes at their next meeting on March 21-22.
suggests that inflationary pressures are running higher than expected at the time of our previous meeting,” he said. The final resting place for the Fed’s interest-rate target has been dubbed the “terminal rate” by investors. In December, Fed officials penciled in a 5.1% terminal rate for Fed funds with a “general tendency” band in a range of 5.1%-5.4%.Investors see the Fed hitting a terminal rate of 5.5%-5.75% in September after four straight 25 basis point moves.
The Fed has raised its benchmark fed funds rate by 4.5 percentage points over the past year. The full effects of the hikes have yet to be felt, especially on inflation, Powell said.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Price Forecast: XAU/USD bulls focus on Federal Reserve Chairman Powell, United States jobs reportGold price (XAU/USD) began March on a front foot, by posting the first positive weekly close in five. The XAU/USD bulls keep the reins during the earl
Read more »
Senate to grill Federal Reserve chief Jerome Powell on efforts to tame inflationFederal Reserve Chief Jerome Powell's first appearance before Congress in nine months coincides with recent signs that the economy remains resilient and inflation still stubbornly high.
Read more »
Gold drifts lower ahead of testimony by Fed's PowellGold trades modestly lower as investors await remarks by Federal Reserve Chair Jerome Powell.
Read more »
Bitcoin Price Slides to $22K as Powell Warns on InflationDisinflation trends 'have partly reversed,' says the Fed's Jay Powell, sending bitcoin lower on Tuesday morning. SteveAlpher reports
Read more »
FOMC Chairman Powell likey to say strong economy could lead to more rate hikes – WSJFOMC Chairman Powell is likely to note in his testimony before the Senate Banking Committee that strong economic activity this year could lead the Fed
Read more »
WATCH LIVE: Fed Chairman Jerome Powell addresses Senate amid inflation and recession concernsThe Senate Committee on Banking, Housing, and Urban Affairs is set to receive the Semiannual Monetary Policy Report to Congress from Federal Reserve Chairman Jerome Powell.
Read more »