Powell: Fed could further hike rates based on inflation

Federal Reserve Chairman Jerome Powell said on Monday that the Fed may raise interest rates and lower bonds earlier and earlier to cope with further inflation in the United States.

"If inflation in the United States continues to last longer than expected," said Powell during an election hearing in the Senate House of Representatives.If the Fed increased its rates again in time, it would "buy". He said the US economy does not need the support of prudent fiscal policy because the current US inflation rate is better than the Fed's 2% target, and the Fed will use its policy to prevent inflation by increasing inflation.

President Powell has said that normalizing the Fed's fiscal policy will be a long process. First of all,The U.S. Federal Reserve is expected to end its asset line in March, hike interest rates this year, and start shrinking its balance sheet later this year.

President Powell said the US economy was in a completely different state and had a bigger track record than when the Fed tightened monetary policy last year. so,The Fed will close the balance sheet earlier and later this time by making a mid-term buy period and starting a lower balance sheet.

Minutes from the December-December Fed financial meeting last week announced that the Fed may raise rates earlier than expected and begin the process of reducing its debt. Most Fed officials expect our rates to rise this year. Wall Street agencies such as Goldman Sachs have forecast that the Fed will hike rates four times this year. file display,The Fed's bonds now stand at over $ 8.7 trillion.

In November of last year, President Biden named President Powell chairman of the Fed and President Brainerd vice-chairman. Both candidates must be approved by the Senate.