Crypto News: US Federal Reserve Chair Jerome Powell said the central bank’s goal of containing the inflation at 2 per cent target has a long way to go. He spoke at a post Fed meeting press conference to deliver his remarks on the state of the US economy and the forecast for upcoming months. Powell began his speech saying the full effects of the ongoing monetary policy tightening are yet to be seen in the economy.
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The central bank’s Federal Open Market Committee (FOMC) on Wednesday delivered a 25 bps rate hike decision, much to the expectation of the financial markets. Thanks to the market wide anticipation of the rate hike this time around, stock indices S&P 500 and Nasdaq, as well as the Bitcoin price showed little volatility after the decision was delivered on Wednesday.
Powell: Rate Hike Possible In September
More importantly, Powell said the Fed had not made a decision about any future FOMC meetings, when asked about plans on further rate hikes. “The intermeeting data came in broadly in line with expectations,” he added. He warned that there is a possibility that incoming economic data could force the Fed to raise interest rate again in the September 2023 meeting.
Stating that the Fed would be careful about considering the inflation reading alone when deciding on the rates, the Fed Chair explained that the FOMC would prefer to look at the totality of data with a particular focus on inflation.
Inflation Remains Elevated: FOMC
Earlier, the FOMC stated that the US economic activity has been expanding at a moderate pace in recent times. It said the job gains have been robust and unemployment rate remained low while inflation remains elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run, it said. Accordingly, the committee decided to raise the target range for the federal funds rate to 525 to 550 bps, while remaining highly attentive to inflation risks.
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