Fed chairman Jerome Powell supports moving more quickly on interest-rate hikes

On Thursday, Federal Reserve Chairman Jerome Powell joined the chorus of central bankers in the United States who want to raise interest rates more quickly. He stated during a talk hosted by the International Monetary Fund in Washington, “It is appropriate in my view to start moving a little more quickly.”

The Fed chairman says a 50-basis-point rise is ‘on the table’ for early May.

When moving away from the central bank’s easy-money policy, he remarked, “I also think there’s something in the idea of front-end loading.”

For the first time in three years, the Federal Reserve raised its benchmark interest rate to a range of 0.25 percent to 0.5 percent in March. Officials believe a rate of roughly 2.4 percent is “neutral,” implying that policy will not affect the economy.

He stated that the Fed is dedicated to getting the consumer price index back to its aim of 2% growth. In March, consumer price inflation reached an annual rate of 8.5 percent. Some economists believe this will be the high point or apex. Powell proceeded with caution.

“Inflation may have peaked in March,” he remarked, “but we don’t know.” He went on to say that the Fed isn’t counting on it.

Powell said the labor market in the United States was “too hot,” but that observers shouldn’t overlook how fantastic things had been for workers.

The Fed just announced a course of gradual but consistent interest-rate hikes last month, but in the weeks since, officials have shown a desire to move more forcefully, with almost unanimous support for a 50-basis-point hike in May. The federal funds’ futures market expects another half-point rate hike in June, according to traders.

Powell refused to be more precise about the May meeting, instead of reminding his audience that officials will announce the decision after their two-day meeting, although he did not contradict the consensus.

As a result, the Fed is “no longer going to count on help from supply-side healing,” according to Powell. Improvements in the shipping situation would be “very helpful” in bringing inflation back to healthy levels, but the central bank will address the issue without expecting a quick rebound, he added.

7 Responses

  1. If we are to REALLY curb INFLATION..we need more aggressive moves by the FED.. A .75 point move is in order…The Fed is behind in helping inflation just As Biden is behind every move his administration makes…

  2. All a 50 point basis rise will do is drive the middle dream of home ownership away forever. Soon there will be three classes socially. The very rich, ultra rich, and the poor.
    Cost of living has risen approximately 40% since the elections with earnings pretty much as they were at that time. The government is throwing money around like Monopoly money. While the share the wealth crowd cheer from the grand delusional fantasy they live in.
    Save our country for our families and future return to a global power we a can be proud of once more!

  3. The Fed , The Fed , The Fed , that’s all we ever hear about ; it’s always about what the Fed wants to do with not one ounce of nay not one gram of concern or compassion for WE THE P0EOPLE ….

    It’s time for WE THE PEOPLE to make the decisions that impact our lives as The Fed in all of it’s magnificent opinion of itself has decided that WE THE PEOPLE ARE INCAPABLE OF DECICIDING WHAT IS IN OUR OWN BEST INTERESTS… HERE’S A GIANT NEWS FLASH FOR FOR ALL OF YOU IN YOUR GRANDIOSE SELF IMPORTANCE ; WE THE PEOPLE HAVE MADE A DECISION ABOUT WHAT IS IN OUR OWN BEST INTERESTS… IT’S TERM LIMITS FOR ALL OF YOU A**HOLES AND GETTING RID OF YOUR “WOKE IDEOLOGY” ALONG WIT YOU… WELCOME TO THE REPUBLIC OF AMERICAN IDEALS THAT DON’T ALUGN WITH YOUR “DEMOCRATIC BULLSHIT”

  4. Rate hikes will make prices higher on homes, vehicles, etc. with inflation climbing, people can barely afford things as they are now, rate heights will makes things worse not better. What are the feds thinking? Oh yeah, they aren’t!

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