Powell Says Interest Rates Still Likely to Rise , Although Disinflationary Process Has Begun.
CNBC reports that Federal Reserve Chairman Jerome Powell spoke at the Economic Club of Washington, D.C., on Feb. 7.
The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector, which is about a quarter of our economy. , Jerome Powell, Federal Reserve Chairman, via statement.
But it has a long way to go.
These are the very early stages, Jerome Powell, Federal Reserve Chairman, via statement.
Powell's statements come after the latest jobs report showed that nonfarm payrolls increased by 517,000 last month.
Powell's statements come after the latest jobs report showed that nonfarm payrolls increased by 517,000 last month.
The reality is we’re going
to react to the data, Jerome Powell, Federal Reserve Chairman, via statement.
So if we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have do more and raise rates more than is priced in, Jerome Powell, Federal Reserve Chairman, via statement.
On Feb. 1, the Federal Reserve raised its benchmark interest rate to a target range of 4.5%-4.75%.
That marks the eighth interest
rate increase since March 2022.
We expect 2023 to be a year of significant declines in inflation.
It’s actually our job to make
sure that that’s the case, Jerome Powell, Federal Reserve Chairman, via statement.
It’s probably going to be bumpy, and we think that we’re going to need to do further rate increases, as we said, and we think that we will need to hold policy at a restrictive level for a period of time, Jerome Powell, Federal Reserve Chairman, via statement