Powell: Policy rate may not rise as high given banking sector stress - Breaking The News

Powell: Policy rate may not rise as high given banking sector stress

19 May

1 min read

EPA-EFE/JIM LO SCALZO

United States Federal Reserve Chair Jerome Powell argued on Friday that the recent developments in the banking sector may result in the policy rate not being raised "as high" to achieve policy objectives.

"Of course, the extent of that is highly uncertain," Powell added.

"While the financial stability helps to calm conditions in the banking sector, developments there are contributing to tighter credit conditions, and are likely to weigh on economic growth, hiring, and inflation," the Fed's chair explained at the Thomas Laubach Research Conference in Washington.

fed interest rate powell banking crisis

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