Federal Reserve Chair Jerome Powell gave support on Tuesday for the 50 basis points rate hikes to be discussed at the next two meetings of the Federal Open Market Committee, saying ongoing rate increases are appropriate.
Powell noted that it is time for the Fed to focus on lowering inflation in the United States to the targeted 2%, insisting the central bank has the tools and resolve to pull inflation down in a "clear and convincing way." If the Fed doesn't see desired results, it will move more aggressively, Powell added.
The Fed will continue raising its key interest rates until it sees inflation going down, Powell asserted, however warning that the Fed officials are unsure about where the neutral position is, and added that the Fed would move past neutral if needed. "Inflation is way too high," he argued.
