Powell says the Fed isn’t sure it raised interest rates enough

The president of the Federal Reserve (Fed), Jerome Powellstated this Thursday that he is not sure that the US regulator has raised interest rates enough to lower inflation to the 2% target.

“The Federal Open Market Committee (FOMC) is committed to achieving a monetary policy stance that is tight enough to reduce inflation to 2% over time, and we are not sure we have achieved that stance“Powell said at a round table on fiscal policies organized by the International Monetary Fund (IMF).

So, yes “It is appropriate to tighten policy further,” Powell said, the Fed will not hesitate to do so. So far it has made eleven increases and rates are in a range of 5.25% and 5.5%, their highest level since 2001.

The Fed will also maintain “that level until the job is done,” Powell said.

Regarding possible new increases, the Fed will continue to act “acting cautiously” so as not to be “deceived by a few good months of economic data” nor to carry out “an excessive adjustment.”

“We are making decisions on a meeting-by-meeting basis based on the totality of incoming data and its implications for the outlook for economic activity, inflation and inflation, as well as the balance of risks,” he said.

Last week, the Federal Reserve decided to pause interest rate increases, the second consecutive respite after the eleven increases it has made since March of last year, although it did not rule out raising them again if the situation demands it.

It may be, therefore, that the Fed decides some increase in the meeting it has before the end of the year, on December 12 and 13.

From March 2022 to June of this year, the Fed’s federal open market committee – the body in charge of monetary policy – decided to raise interest rates.