The Federal Reserve is “strongly committed” to bringing down inflation, which is at its highest level in 40 years, and policymakers are moving “quickly to do so,” the head of the US central bank said on Wednesday. Jerome Powell.
“It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit everyone,” Powell said in remarks prepared for a hearing before the US Senate Banking Committee.
Inflation remains well above the Fed’s target level of 2%, although there are some signs that a gauge of price increases that excludes volatile food and energy costs may have leveled off or eased somewhat last month. Powell said.
Powell was due to appear before the Senate committee a week after the Federal Reserve raised its overnight benchmark interest rate by three-quarters of a percentage point, its biggest increase since 1994. Speaking at a news conference after the decision to In politics, Powell also elaborated on the increasingly difficult road ahead for the central bank to bring down inflation without causing major damage to the economy in the process, especially a significant rise in unemployment.
“Our goal really is to get inflation down to 2% while the labor market stays strong… What’s becoming clearer is that a lot of factors that we don’t control are going to play a huge role in deciding whether or not that’s possible.” “. Powell said last week, citing the war in Ukraine and global supply concerns.
Connect with the Voice of America! Subscribe to our channel Youtube and turn on notifications, or follow us on social networks: Facebook, Twitter and Instagram
Add Comment