US Federal Reserve chairman said, further increase in interest rates under consideration

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washington US Federal Reserve Chairman Jerome Powell said on Friday that an additional hike in interest rates is still under consideration and rates may remain high for longer than expected.

In a highly anticipated speech on Friday at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming, Powell said the Fed will pay close attention to economic growth and labor market conditions when making policy decisions, CNN reported.

“Although inflation has come down from its peak, which is a welcome development, it remains very high,” Powell said.

According to a CNN report, “We are prepared to raise rates further if appropriate, and intend to keep policy at a restrictive level until we are confident that inflation is continuing to slide toward our target.” Is.”

The Fed chief’s annual presentation at the symposium, which has become a major event in the world of central banking, generally gives an indication of what to expect from monetary policy in the coming months.

The Fed raised its benchmark lending rate by a quarter point in July to 5.25-5.5 percent, the highest level in 22 years, after a pause in June.

Minutes of the Fed’s July meeting showed officials were concerned about rising pressure on prices due to the economy’s surprising strength, and suggested further rate hikes if necessary, CNN reported.

Some officials have said in recent speeches that the Fed may risk holding rates steady, sparking intense debate among officials about what the Fed should do next.

According to the CME Fedwatch tool, financial markets are still bullish that the Fed will decide to keep rates steady at its September meeting, as inflation pressures continue to ease, CNN reported.

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