The head of the Federal Reserve, Jerome Powell, declared on Wednesday that the existing interest rates, which stand at 5.3%, are expected to stay unchanged in the near future due to persistently high inflation.
“My colleagues and I are firmly concentrated on our duty to encourage the highest level of employment and steady prices for the people of America,” Powell mentioned during a press briefing on May 1, following the Federal Open Market Committee’s two-day gathering. said Powell indicated that despite progress in the economy, inflation remains too high.
“We are fully committed to bringing inflation back to our target of 2%,” Powell stated. He pointed out that the strict approach to monetary policy has been pressing down on economic activity and inflation, and the risks related to achieving our objectives for employment and inflation have improved over the past year.
Powell also noted that the recent upsurge in inflation has moved the Federal Reserve further away from reaching its 2% inflation goal. Consequently, the interest rates will remain high to reduce inflation rates. He also mentioned that there are long-term expectations for inflation to decrease as the year progresses.
Earlier in the year, the Federal Reserve had indicated a willingness to gradually reduce interest rates, but despite a significant decrease from the previous year, inflation has remained high, as previously reported by The Dallas Express.
The Biden administration has faced criticism from the public for the considerable interest rate increases that consumers have experienced since taking office in 2021, as reported by The Hill. However, the administration has shifted blame, stating that it inherited a flawed system from former President Donald Trump. reported by When Trump departed from office in December 2020, the interest rates were at 1.36%, after being at 1.17% and 1.18% in the two preceding months, according to YCharts..
Federal Reserve Chair Jerome Powell announced on Wednesday that current interest rates would remain at 5.3% and would not likely change soon due to stubbornly high inflation. “My colleagues and I remain squarely focused on our dual mandate to promote maximum employment and stable prices for the American people,” Powell said at a press conference […] reported by The Hill. However, the administration has deflected blame, claiming it inherited a broken system from former President Donald Trump.
When Trump left office in December 2020, inflation sat at 1.36% after being at 1.17% and 1.18% the two previous months, respectively, per YCharts.
