Federal Reserve Chair Jerome Powell expressed during his testimony at the US House Financial Services Committee’s semi-annual monetary policy hearing that raising interest rates two more times this year would be appropriate.
Powell also stated that policymakers expect interest rates to go higher to control price pressures and reduce US growth. The statement from Powell comes after the FED decided to pause interest rate hikes this month.
Additionally, the Federal Reserve has decided to maintain the interest rate at its current range of 5% to 5.25%. This decision by the FED marks the first pause in the series of interest rate hikes initiated by the Federal Reserve in March 2022, which aimed to address the inflation rate in the United States.
Powell says it makes sense to increase interest rates in coming months
Talking about the Fed’s plans, Powell responded to lawmakers by saying that it may make sense to continue moving rates higher in the coming months. Powell conveyed his understanding of inflation, stating that FED officials understand the hardship caused by high inflation. Additionally, he also stated that they are strongly committed to bringing inflation back down to the 2% goal.
During his testimony, Powell also spoke about crypto and stablecoins. He stated that crypto appears to have staying power as an asset class. Additionally, Powell mentioned that they see stablecoins as a form of money.