Federal Reserve Chair Jerome Powell said it could be appropriate to further increase the interest rate going forward. Powell said another unusually large increase could be appropriate at the next FOMC meeting. The Fed chair said the committee would not have hesitant to a 100 basis point increase in interest rate if needed. The committee wouldn’t hesitate to make an even larger move if necessary, indicating a higher rate hike. In today’s meeting, that was not the case and the committee decided for a 75 basis point increase, he added.
“While another unusually large increase could be appropriate at our next meeting, that is a decision that will depend on the data we get between now and then.”
Powell said the current picture is clear to see, the labor market is extremely tight and inflation is much too high. On the question of rising inflation concerns, he said, “We are confident that inflation would be moving to 2 per cent.” The problem with the current situation is that constant supply shocks could impact inflationary trends, he said.
U.S. Not In Recession Currently: Powell
When asked if the United States in currently in a recession, Powell said many economic factors indicate otherwise. “No, I don’t think the U.S. is currently in a recession. The reason is too many areas of the economy are performing well at the moment,” he stated. Taking the example of the health of the labor market, he said there is incredibly high growth in the job market.
“The labor market is growing. Payroll jobs are growing remarkably and all other factors are very strong in the labor market.”
Crypto Responds Positively To Powell Interest Rate Comments
Meanwhile, the cryptocurrency market responded positively to the Fed rate hike decision. In the last one hour, Bitcoin (BTC) rose by as much as 4.22% while Ethereum (ETH) increased by 5.33%. As of writing, Bitcoin is trading at $22,589 while ETH price stands at $1,582, as per CoinMarketCap.
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