Future progress on lowering U.S. inflation may have to come from restraining demand, Fed chair says
Federal Reserve officials are “gratified” with the progress made so far on bringing down U.S. inflation, but are not yet confident that interest rates are high enough to bring inflation down to 2% target over time, Fed Chairman Jerome Powell said Thursday.
But later, Powell added that the biggest mistake the Fed could make would be to fail to get inflation under control. Traders see only a small chance of an interest rate hike at the Fed’s next meeting on Dec. 12-13., according to the CME Fed Watch tool. “While the broader supply recovery continues, it is not clear how much more will be achieved by additional supply-side improvements,” Powell said.
In his remarks, Powell also announced that the Fed will conduct a formal review of its interest-rate policy framework in the second half of 2024. Some former Fed staffers and outside economists hope the central bank will use this regular 5-year review to consider raising its 2% inflation target, or at least make it a range.
Federal Reserve Inflation Interest Rates Jerome Powell
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Climate protesters disrupt speech by Fed Chairman Jerome PowellZachary Halaschak is an economics reporter at the Washington Examiner. Before moving to Washington, he worked in Alaska, covering politics, government, and crime for the Ketchikan Daily News. While there, Zach won the Alaska Press Club’s second-place award for best reporting on crime or courts for his coverage of a local surgeon’s alleged murder.
Read more »
Forex Today: Mid-tier US data and Chairman Powell's comments could ramp up volatilityHere is what you need to know on Thursday, November 9: The US Dollar (USD) lost its strength following the bullish action seen earlier in the week, with the USD Index closing the day virtually unchanged on Wednesday.
Read more »
Dollar steadies with Fed chief Powell set to speak againDollar steadies with Fed chief Powell set to speak again
Read more »
USD/CAD Price Analysis: Trades inside Wednesday’s range ahead of Fed Powell’s speechThe USD/CAD pair trades back and forth in a narrow range near the crucial resistance of 1.3800 in the European session.
Read more »
Reactions in USD due to comments by Fed members are possible, but really only by a few pipsThe market will pay particular attention to Fed Chair Jerome Powell’s comments.
Read more »
USD/JPY climbs above 151.00 as US Dollar recovers ahead of Fed Powell’s speechThe USD/JPY pair continues its winning streak for the fourth trading session on Thursday.
Read more »