Following the Federal Reserve's another aggressive rate hike of 75 basis points, Chair Jerome Powell reiterated the Fed's commitment to bringing inflation down to the 2% target. Powell reiterated the Fed has the tools and resolve to restore price stability, confirming the policy will purposefully move toward reaching its goal.
However, Powell warned the Fed still sees elevated inflation risks, explaining that the pace of rate hikes will continue depending on the incoming data and outlook. "At some point, it will become appropriate to slow the pace of rate hikes," he added. Still, the Fed will continue looking for compelling evidence inflation started declining over the coming months before adjusting policy.
"Likely, we'll need a restrictive policy stance for some time," Powell reiterated after the Fed's second consecutive rate hike of 75 basis points.
