United States Federal Reserve Chair Jerome Powell underscored on Thursday that the evidence suggests that the central bank's monetary policy is not "too tight" and that the country's economy appears to be "handling" the elevated interest rates more effectively than initially anticipated.
The resilience of the United States economy indicates that the "neutral rate" has risen in the near term, while uncertainties persist regarding its longer-term trajectory. "It's possible we are going into a more inflationary period, that will be characterized by more supply shocks...but it's hard to know," Powell said at the Economic Club of New York.
The chair of the Federal Reserve also reiterated that the policymakers' goal remains to bring inflation down to its 2% target, with the risk of elevated inflation rate still "high."
