News from Al-Madinah: Jerome Powell, the president of the US Federal Reserve, stated on Wednesday that the bank might slow down the rate of interest rate increases in the monetary policy meeting by the end of the year, but he cautioned against any expectations that the bank will soon stop rising interest rates.
When it comes to efforts to boost the target federal interest rate, “it is too early to think about quitting.”
Speaking during a press conference after the Federal Open Market Committee meeting, Powell said that with regard to moving to lower increases in interest rates from 75 basis points, “this time will come, and this time may come at the December meeting at the earliest. ”
The method that needs to be approved at the Federal Open Market Committee meeting next month, he continued, “has not yet been decided,” though.
As part of its continuous efforts to combat the greatest inflation surge in 40 years, the US Central opted to hike interest rates by 75 basis points for the sixth time since March, making them the highest level since 2008. This is the fourth consecutive increase.
The continuous interest in America over 6 meetings since March is the fastest pace of increases since the President of the Federal Reserve President Paul Volker to control inflation in the 1970s and eighties.
Officials from the US federal government said on Wednesday that they will soon be able to lower interest rates while evaluating the impact of their prior actions on the economy.
The new monetary policy language demonstrates the council’s awareness of the ongoing negative effects of its rapid rate of interest rate increases as well as its desire to concentrate on achieving an appropriate level of interest rates that would be sufficient to gradually bring inflation back to its target rate of two percent.
The Federal Open Market Committee will consider the impact of the cumulative tightening of monetary policy and the slowdown brought on by monetary policy when determining the pace of future increases, according to the officials, even though the Council did not reveal its intentions regarding future decisions.
“This formula acknowledges the council’s awareness of the expansion of the scope of discussions on the viability of the Federal Reserve tightening its monetary policy and its impact on the economies of the United States and the world, as well as the danger that continued raising interest rates can pose significant pressure on the financial system or may result in recession.
More rises are possible because the Federal Reserve statement stated that authorities are still “on a heightened alert against the dangers of inflation.”
News on Sky.
President of the “Federal” Reserve: The December meeting could see a decline in interest rates.
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