Powell noted that tighter credit conditions are likely ahead following turmoil in the regional banking sector.
The Federal Reserve raised interest rates by 25 basis points, or a quarter of a percentage point. The move brings the benchmark funds rate to a range of 4.75% to 5%. In the wake of recent turmoil for regional banks, Chair Jerome Powell assured the public that the Fed will use "all of our tools" to keep the banking system safe.Financial conditions seem to have tightened more than the U.S.
"The question for us though is how significant will that be and what would be the extent of it and what would be the duration of it," he said, adding that "rate cuts are not in our base case."00:54Federal Reserve Chair Jerome Powell said it's "too early" to say what effect the banking crisis will have, but the central bank leader expects a pathway "still exists" to a soft landing.
The three major indexes dipped to their lows for Wednesday during Federal Reserve Chair Jerome Powell's press conference. "What I'm saying is you've seen that we have the tools to protect depositors when there is a threat of serious harm to the economy or to the financial system, and we're prepared to use those tools. I think depositors should assume that their deposits are safe," he said.Fed Chairman Jerome Powell said the central bank will conduct more rate hikes if it needs to in order to fight inflation.
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