Fed’s Powell does not rule out rate rise at coming meetings
2023.06.28 10:47
© Reuters. FILE PHOTO: Federal Reserve Board Chairman Jerome Powell testifies at a Senate Banking Housing and Urban Affairs Committee hearing on “The Semiannual Monetary Policy Report to the Congress” on Capitol Hill in Washington, U.S., June 22, 2023. REUTERS/Juli
By Michael S. Derby
(Reuters) – Federal Reserve Chairman Jerome Powell, reiterating that most central bankers still see two rate rises happening this year, did not rule out more rate hike action at the central bank’s next meeting, in comments on Wednesday.
“We’ve come a long way” with rate rises, Powell said at a European Central Bank conference, and that holding off on a rate rise earlier this month was a move to take stock of how the rate hike campaign is affecting the economy. But while the Fed has not decided about the tactics of future rate rises, “I wouldn’t take moving in consecutive meetings off the table at all,” he said.
The next rate setting Federal Open Market Committee meeting is scheduled for July 25-26.
Powell drove home that regardless of what the cadence of future policy actions might be, “the committee clearly believes there’s more work to do” with tightening monetary policy to bring down inflation pressures.
