Jerome H. Powell, the chair of the Federal Reserve, is set to tell House lawmakers that the United States remains a “long way” away from low and stable inflation even 15 months into the central bank’s campaign to cool the economy and wrestle down rapid price increases.
In light of that, the Fed could raise interest rates even higher than their current level of just above 5 percent.
“Inflation has moderated somewhat since the middle of last year,” Mr. Powell will say, according to the text of his prepared remarks.
“Nonetheless, inflation pressures continue to run high, and the process of getting inflation back down to 2 percent has a long way to go.”Fed officials left interest rates unchanged last week following 10 straight increases.
But central bankers have been adamant that the decision to hit pause did not amount to a declaration of victory over inflation.
Persons:
Jerome H, Powell, ” Mr, “
Organizations:
Federal Reserve, Financial, ” Fed
Locations:
United States