US Federal Reserve Chairman Jerome Powell said in his upcoming speech to the Economic Club of New York, on Thursday, that the inflation rate in the United States is still “very high,” warning of the possibility of the need for a new tightening of monetary policy.
Powell noted that shorter-term measures of core inflation over most of the past three or six months are currently below 3%, but warned that these shorter-term measures are often volatile.
Powell said: “In any case, inflation is still very high, and a few months of good data are only the beginning of what is needed to build confidence that inflation is falling sustainably towards our goal… We do not yet know how long the low readings will continue or where inflation will settle over the quarters.” “The next one.”
He added: “While the road is likely to be bumpy and take time, my colleagues and I are united in our commitment to permanently reduce inflation to 2%.”
Powell described the current stance of monetary policy as “restrictive,” stressing the desire of Federal Reserve officials to continue on this path until they are confident that inflation is constantly declining.
The Chairman of the Federal Reserve Board concluded his speech by saying that there is a group of ambiguity factors that complicate the task of the US central bank to achieve a balance between the risks of monetary policy being too strict and the risks of it being less strict than necessary.
The Federal Reserve is scheduled to hold its regular meeting on October 30 and November 1 to review monetary policy, with most expectations indicating that interest rates will remain unchanged.
