The Federal Reserve will push rates higher than previously expected and keep them there for an extended period, Chair Jerome Powell said Wednesday, in remarks likely intended to underscore the Fed's single-minded focus on combating stubborn inflation.
Powell acknowledged there has been some good news on the inflation front, with the cost of goods such as cars, furniture, and appliances in retreat. He also said that rents and other housing costs — which make up about a third of the consumer price index — were likely to decline next year.
“Despite some promising developments, we have a long way to go in restoring price stability,” Powell said. The lack of workers reflects a jump in early retirements, the death of several hundred thousand working-age people from COVID-19, and a sharp decline in immigration and slower population growth, he said.
The Fed has lifted its key rate six times this year, to a range of 3.75% to 4%, the highest in 15 years. Those increases have sharply boosted mortgage rates, causing home sales to plunge, and it has raised costs for most other consumer and business loans.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Powell: Fed to keep rates higher for longer to cut inflationFed Chair Jerome Powell says the Federal Reserve will push rates higher than previously expected and keep them there longer to fight a stubborn bout of inflation.
Leer más »
Fed chair Powell: No 'clear progress' toward lower inflationFederal Reserve chair Jerome Powell said there isn't yet 'clear progress' that decades-high inflation has turned a corner, despite rapid interest rate increases and slowing economic growth.
Leer más »
Gold Price Forecast: XAU/USD perks up on Fed Powell dovish speechGold price is rising because of a dovish speech by Federal Reserve's Jerome Powell on Wednesday that sunk the US Dollar. At the time of writing, Gold
Leer más »
Smaller rate hikes are likely coming in December, says Fed Chair Powell | CNN BusinessThe Federal Reserve could pull back on the pace of its aggressive rate hikes as soon as December, Fed Chairman Jerome Powell said Wednesday at an economic forum.
Leer más »
Fed Chair Powell Suggests 0.5 Percentage Point Hike For DecemberFed Chair Powell made clear in a recent speech that services inflation is what concerns him most, and that interest rates are approaching the level the Fed wants to see. That makes a 0.5 percentage point rate move for the Fed's December meeting most likely.
Leer más »