The American central bank is not backing down: there may be another interest rate hike

RockedBuzz
By RockedBuzz 1 Min Read

Federal Reserve Chairman Jerome Powell has signaled that another interest rate hike might happen if inflation stays excessive and financial development stays sturdy. At an International Monetary Fund occasion, Powell acknowledged that

the Federal Reserve will not hesitate, they’re able to additional tighten financial coverage if essential.

Although inflation has slowed in current months, which the Fed sees as progress, Powell famous that it is unsure whether or not present financial coverage is tight sufficient to return inflation to the goal stage, which is at the moment 2%.

However, Powell emphasised that the central bank will be cautious to keep away from extreme tightening of financial coverage as this might set off a recession.

Cover picture credit score: Chip Somodevilla/Getty Images

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