Central bank Chairman J Powell expressed the federal reserve’s resoluteness to control the inflation and said that aggressive increase in interest rates are possible in the next month.
Powell said, “It is appropriate in my view to be moving a little more quickly to raise interest rates. I also think there is something to be said for front-end loading any accommodation one thinks is appropriate. I would say 50 basis points will be on the table for the May meeting.”
Powell’s statements meet market anticipations that the central bank will move from 25 basis point increases quickly to curb inflation which is running at its highest speed in last 40 years.
Powell said, “Our goal is to use our tools to get demand and supply back in synch, so that inflation moves down and does so without a slowdown that amounts to a recession. I don’t think you’ll hear anyone at the Fed say that that’s going to be straightforward or easy. It’s going to be very challenging. We’re going to do our best to accomplish that. It’s absolutely essential to restore price stability. Economies don’t work without price stability.”
