FED Chair Jerome Powell Says Officials “Dont See Rate Cuts This Year”

Joshua Ramos
Federal Reserve
Source: Pixabay

Following the vital decision of the Federal Reserve to raise interest rates by another 25 bps, Fed Chair Jerome Powell says officials “don’t see rate cuts this year.” Moreover, the statements following Powell’s assured commitment to inflation to reach the Fed’s 2% target.

Conversely, Powell spoke following the Federal Reserve meetings that indicated yet another increase in interest rates. There, he addressed the budding banking crisis, assuring the safety of the banking sector.

Powell Doesn’t Expect Rate Cuts

Today marks a year since the Federal Reserve first set out to combat growing inflation. Subsequently, a plethora of interest rate hikes have been the result of that mission, with the latest arriving today.

The Fed faced what was their most crucial meeting in some time, as they debated whether or not to continue the hikes. Specifically, there is uncertainty as to what more pressure on the banking system would entail, due to a budding banking crisis setting off from the collapse of Silicon Valley Bank a few weeks ago.

Powell Says He’s Been Watching the Crypto Space and the Turmoil
Source: CNBC

Now, not only did the Federal Reserve continue their rate hikes, But Fed Chair Jerome Powell says officials, “don’t see rate cuts this year.” Conversely, Powell reaffirmed the commitment to reaching the 2% inflation target of the Fed, while assuring the US that “the banking system is safe,” in subsequent quotes.

How the market reacts to the decision will be immensely interesting, as the banking sector is still reeling. Consequently, with news of no rate cuts in sight, the following developments become even more intriguing in many financial sectors of the country.