Powell lays out cautious plan to raise interest rates, combat high inflation
By Sylvan Lane - 03/02/22 03:29 PM EST
Federal Reserve Chairman Jerome Powell told lawmakers Wednesday the central bank would move ahead “carefully” with raising interest rates as the Russian invasion of Ukraine looms over its battle with inflation.
In testimony before the House Financial Services Committee, the Fed chief said the bank’s monetary policy committee is on track to raise interest rates in two weeks with inflation well above target and the economy remarkably strong.
Powell acknowledged that the Fed has limited power over the supply shortages driving prices higher, but he said it was time for the bank to end “very highly stimulative” policy with higher borrowing costs.
"Inflation is too high,” Powell said, “but I would also say that given the current situation, we need to move carefully. We will be nimble."
"We will use our tools to add to financial stability, not to create uncertainty,” Powell added.
more
https://thehill.com/policy/finance/economy/596587-powell-lays-out-cautious-plan-to-raise-interest-rates-combat-high
