Federal Reserve Chairman Jerome Powell reiterated Thursday that the US central bank is likely to raise interest rates at least once more for the remainder of the year due to persistently high inflation in the service sector of the economy and surprisingly tight job market.
Before a commission of the federal Senate, Powell pointed out that "inflation has moderated a little since the middle of last year." However, the Fed Chairman pointed out that "inflationary pressures remain high."
Powell testified before the Senate Banking Committee on the second day of semiannual testimony before the US Congress. Powell testified before the House Financial Services Committee on Wednesday and delivered a similar message that other interest rate hikes are likely this year.
On Thursday, Powell commented that "almost all" of the Fed's policymakers "anticipate that it will be appropriate to raise interest rates slightly by the end of the year."
In May, consumer prices rose 4% compared to the previous 12 months, below the year-on-year high of 9.1% reached in June 2022, but still doubling the 2% inflation target set by the Federal Reserve.
The central bank has increased its benchmark rate aggressively since March 2022 in order to slow down the economy and reduce inflationary pressure. At their meeting last week, Fed policymakers left their benchmark interest rate unchanged after 10 consecutive hikes, buying time to see what impact the rate hike is having on the economy. But rate hikes could resume after a pause: 12 of the Fed's 18 policymakers indicated last week they expect at least two more hikes this year.
High interest rates have wreaked havoc on the US housing market as it is dependent on mortgage rates, which have risen sharply since the Fed launched its anti-inflation campaign.
- Allow me to introduce myself. I am Nathan Rivera, a dedicated journalist who has had the privilege of writing for the online newspaper Today90. My journey in the world of journalism has been a testament to the power of dedication, integrity, and passion.
My story began with a relentless thirst for knowledge and an innate curiosity about the events shaping our world. I graduated with honors in Investigative Journalism from a renowned university, laying the foundation for what would become a fulfilling career in the field.
What sets me apart is my unwavering commitment to uncovering the truth. I refuse to settle for superficial answers or preconceived narratives. Instead, I constantly challenge the status quo, delving deep into complex issues to reveal the reality beneath the surface. My dedication to investigative journalism has uncovered numerous scandals and shed light on issues others might prefer to ignore.
I am also a staunch advocate for press freedom. I have tirelessly fought to protect the rights of journalists and have faced significant challenges in my quest to inform the public truthfully and without constraints. My courage in defending these principles serves as an example to all who believe in the power of journalism to change the world.
Throughout my career, I have been honored with numerous awards and recognitions for my outstanding work in journalism. My investigations have changed policies, exposed corruption, and given a voice to those who had none. My commitment to truth and justice makes me a beacon of hope in a world where misinformation often prevails.
At Today90, I continue to be a driving force behind journalistic excellence. My tireless dedication to fair and accurate reporting is an invaluable asset to the editorial team. My biography is a living testament to the importance of journalism in our society and a reminder that a dedicated journalist can make a difference in the world.