Deutsch한국어 日本語中文EspañolFrançaisՀայերենNederlandsРусскийItalianoPortuguêsTürkçe
Portfolio TrackerSwapBuy CryptoCryptocurrenciesPricingWalletNewsEarnBlogNFTWidgetsCoinStats MidasDeFi Portfolio Tracker24h ReportPress KitAPI Docs

Jerome Powell: Federal Reserve May Raise Interest Rates Further If Necessary

3M ago
bullish:

0

bearish:

0

Jerome Powell: Federal Reserve May Raise Interest Rates Further If Necessary

The Federal Reserve Chair, Jerome Powell, stated on Friday that the central bank has made significant progress in bringing down inflation to its 2% goal through aggressive interest rate hikes. 

Jerome Powell emphasized further that the Federal Reserve is prepared to raise rates further if appropriate. Jerome Powell made these remarks during a speech at Spelman College in Atlanta, where he also mentioned that the risks of under- and over-tightening are becoming more balanced.

Jerome Powell’s comments indicate that he is not inclined to change the Fed’s vigilant stance on inflation and interest rates, despite widespread assumptions by economists and investors that the central bank is almost certainly done raising rates and could start cutting as early as spring. 

On Thursday, Fed board member Christopher Waller fueled such speculation by suggesting that the Fed could begin lowering rates within several months if inflation continued to decrease, even if the nation did not enter a recession.

Read Also: US Stocks Traded Higher As Fed Officials Express Optimism On Inflation

Since early last year, the Fed has aggressively raised its key short-term interest rates from near zero to a range of 5.25% to 5.5% to combat annual inflation that reached 7% in the summer of 2022. 

These rate increases have pushed mortgage rates above 7%, dampened the housing market, and driven up rates for auto loans, credit cards, corporate bonds, and other types of borrowing.

As a result, consumer spending and business investment have been affected, and economic growth has slowed, although the economy has remained resilient.

In his speech, Jerome Powell noted that inflation had declined to 3% in October, but a core reading excluding volatile food and energy items was higher at 3.5%. 

Over the past six months, core inflation has been running at an annual rate of 2.5%. Jerome Powell attributed this decrease to a better balance between supply and demand, as well as the Fed’s rate hikes. However, markets currently predict that the Fed will not raise rates further and will likely start cutting by May.

The post Jerome Powell: Federal Reserve May Raise Interest Rates Further If Necessary appeared first on BitcoinWorld.

3M ago
bullish:

0

bearish:

0

Manage all your crypto, NFT and DeFi from one place

Securely connect the portfolio you’re using to start.