US currency keeper Powell warns interest rate in the previous or too later
US currency keeper Powell warns interest rate in the previous or too later
Analysis of the US currency keeper Powell in front of the US Senate: Small progress in the fight against inflation
At a hearing in front of the US Senate, Jerome Powell, the chairman of the US Federal Reserve, discussed the current challenges in the fight against inflation and its effects on economic development and the labor market. Powell warned that both low and late interest rate reductions could endanger stability.An early intervention with strong interest reductions could, on the other hand, in turn or even reverse the progress of inflation. In this context, the Federal Reserve recently decided to leave the key interest rate in the range of 5.25 to 5.5 percent, which is already the seventh in a row.
Elmar Völker, economist at the Landesbank Baden-Württemberg, commented on Powells and emphasized that the Fed has not yet completely opened its future plans regarding the key interest rate. In view of the uncertain economic prospects, it is difficult to make precise forecasts.
peoples also emphasized that the next interest decision by the FED on July 31st was coming too early to bring about an extensive money -political change. He suggested that the meeting in September may be a more suitable point in time if the signs of a serious economic weakening continue to be condensed.
Economic stability and inflation control are still the focus of the financial decisions of the Federal Reserve, and Powell's statements in front of the Senate illustrate the fine balance that is necessary when designing monetary policy.
- Nag
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