Federal Reserve Chairman Jerome Powell stated that they will continue to tighten monetary policy until inflation falls.
Powell made evaluations on monetary policy at the event organized by The Wall Street Journal.
Emphasizing that they have the tools and determination to reduce inflation, Powell said, “We need to see inflation come down clearly and convincingly. “If we don’t see that, we will have to consider moving more aggressively.”
Pointing out that the bank increased interest rates by 50 basis points in its last meeting, and they thought that continued interest rate hikes would be appropriate. Powell noted that raising interest rates by 50 basis points in the next two meetings also found support in the Federal Open Market Committee (FOMC).
Powell said the Fed would not hesitate to raise interest rates to higher levels until inflation falls.