Senate-re-elected Fed Chairman Powell reiterates that June and July are suitable for raising interest rates

Powell reiterated that the Fed is not “actively considering” a rate hike larger than 50 basis points. (Reuters)

President of the Federal Reserve (Fed)ballreiterated that the next two meetings could berate increase0.5 percentage points, but not completely ruling out the possibility of a bigger rate hike. Mary Daly, chair of the San Francisco Federal Reserve Bank, also favored a 0.5 percentage point increase in each of the next two meetings.

The Senate voted Thursday to confirm Powell as Fed chairman, reaffirming his ability to tackle the highest inflation in decades. Bauer’s personnel case passed with an 80–19 majority when the U.S. Suffers from skyrocketing prices. Some accuse Fed of being too slow, people complain, PresidentBidensupport also affected

In an interview with Marketplace Public Radio on Thursday, Powell explained his determination to control inflation, but he also acknowledged that keeping it under control while avoiding a recession may depend on factors beyond the Fed’s understanding. could.

“If the economy does not perform as expected, it would be appropriate to raise rates by 50 basis points over the next two meetings,” Powell said.

Asked whether he ruled out a larger 75 basis point increase, Powell reiterated his statement at the Fed’s press conference on Thursday that the Fed was not “actively considering” a bigger rate hike, but He also stressed: “If the situation turns out to be worse than expected, we are ready to do more.”

“In my opinion, an increase of 50 basis points is quite reasonable, and now I have no reason to think that the economy is going to stall in the next two meetings,” Daly said in an interview with Bloomberg television. The same day it also said that market speculation of an increase of 75 basis points is “not the main consideration”.

“I expect the financial situation to be stronger as we increase these rates and reduce incentives,” he said. This will help in bringing the supply and demand back into balance.

San Francisco Federal Reserve Bank President Mary Daly said the market is expected to rise by 75 basis points.
San Francisco Federal Reserve Bank President Mary Daly said market speculation of a 75-basis-point rate hike “is not a prime consideration.”Reuters

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