11:37pm
Wednesday 14 December 2022
Cairo-Masrawy:
Jerome Powell, chairman of the Federal Reserve (the central bank of the United States), said he thought it right to continue raising interest rates, explaining that a rate hike of about 50 basis points is still large and “we still have a way to go.”
Powell added in a Wednesday press conference that despite the significant tightening of financial conditions over the past year, the Federal Reserve’s policy so far is not restrictive enough, CNBC Arabia reported.
This came after the Federal Reserve announced on Wednesday it would raise interest rates for the seventh time this year, an expected 0.5% increase so that interest rates would be between 4.25% and 4.5%, which is the highest level in 15 years.
Powell said the labor market remains very tight, even though job creation is down from year-to-date levels and inflationary pressures are on an upward slope, “and we need more evidence of lower inflation.” “.
And the inflation rate in America slowed down last November, more than expected, and the inflation rate recorded 7.1%, compared to 7.7% in October.
Powell stressed that inflation risks have led to higher interest rates and the Fed still has work to do
He stressed that the US economy has slowed sharply since last year, but the Fed believes interest hikes are needed for monetary policy to become tight enough.
Powell said the Fed’s interest rate decision in February would depend on financial and economic conditions.
