Fed Chairman Jerome Powell took the floor at the “The Future of Everything” event organized by the Wall Street Journal.
Powell, who will be the guest of WSJ’s Nick Timiraos, spoke about rising interest rates, the Fed’s plan to address inflation and the outlook for the US economy.
Here are Highlights from the Speech by Fed Chairman Jerome Powell
The Fed chairman explained that the time has come when the FED should focus on reducing inflation:
“We need to see inflation come down convincingly. Continuing interest rate hikes is appropriate. There is serious support for a 50 basis point rate hike in the next two meetings. We like to work on expectations. It was good to see the markets react to what we said.”
Jerome Powell also stated that they can act more aggressively if the fire of the highest inflation in recent years in the USA does not extinguish:
“We need to see inflation come down drastically. If we don’t see that, we’ll have to be more aggressive. If we can achieve this, we can slow the rate hikes. We are rapidly raising interest rates to normal levels.
We will probably reach this level in Q4. However, this is not a stopping point. We will continue to increase interest rates until we see inflation begin to decline. Looking back, it would have been better to raise rates sooner.”
over $30,000 prior to Powell’s speech bitcoin The price dropped to $ 29,450 at the time of this writing. U.S. 10-years rose as much as 2.98% during Powell’s speech.
Powell cited the Ukraine-Russia war as one of the causes of inflation:
“The Ukraine war is pushing commodity prices up. We don’t know how long this will take. Same with lockdowns in China. These will make it harder for inflation to fall. Calming inflation will be a difficult task. For a soft landing, we must slow down the growth.
There may be some pain at this time. In any case, we will ensure price stability. We need to move forward with rate hikes. Markets handle our thoughts pretty well.
In addition, Powell spoke about the performance of the markets in the last days:
We have seen some volatile and volatile days in the markets, but I see that we have overcome this well so far.
*Not investment advice.