United States Federal Reserve Chair Jerome Powell said on Wednesday that the central bank believes further raises in interest rates would be appropriate "somewhat further by the end of the year" as a part of its efforts to reduce inflation in the country to its target of 2%, to which there is still "a long way to go."
In the speech Powell will give at his testimony before Congress later in the day, which the Fed shared, the chair pointed out at the visible "effects of our policy tightening on demand in the most interest rate–sensitive sectors of the economy. It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation."
Commenting on inflation, Powell noted that while it showed some signs of moderation recently, "pressures continue to run high." Still, he added that "longer-term inflation expectations appear to remain well anchored."
