Federal Reserve Chairperson J Powell on Monday vowed tough action on growing inflation.
The central bank leader said, “The labor market is very strong, and inflation is much too high.”
The speech comes within a week after the central bank increased interest rates for the first time since December 2018 to battle against inflation which is at its highest level in 4 decades.
Repeating a stand the Federal Open Market Committee (FOMC) made in its post-meeting on Wednesday, Powell expressed that interest rate hikes would continue till the inflation is under control. He said the hikes could be even tighter if essential than the 25-basis point move approved at the FOMC meeting.
Powell said, “We will take the necessary steps to ensure a return to price stability. In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so. And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.”