(MENAFN) Federal Reserve Chair Jerome Powell stated on Wednesday that current rate increases are going to be suitable to overthrow inflation in the US.
Powell stated to the Senate Banking Committee on monetary policy that "Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2 percent," adding, "We anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy.”
He highlighted in opening comments that "At the Fed, we understand the hardship that high inflation is causing, we are strongly committed to bringing inflation back down and we're moving expeditiously to do so."
Powell stated that the rise in crude oil costs and other commodities that caused from Russia's military attack on Ukraine is surging rates for gasoline and fuel and creating further ascending weight on inflation and coronavirus-associated lockdowns in China are expected to exacerbate current supply chain disruptions.
He stated that "We are highly attentive to the risks that high inflation poses to both sides of our mandate. And we're strongly committed to returning inflation to our 2 percent objective."
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