The Federal Reserve will act hesitantly if necessary to help control inflation and secure full employment, Powell said. However, he said the imbalance between supply and demand, which is pushing up prices, is expected to weaken.
“If we need to take the time to raise additional rates, we will do so,” Powell said in a question at a nomination approval hearing held by the Senate Banking Commission on the 11th. “Leverage financial authorities’ tools to undo inflation,” he said.
Fed Chair Powell testifies at a nomination approval hearing
Source: Bloomberg
Powell emphasized that the U.S. financial authorities would not prioritize price stability responsibilities over the goal of full employment, but said the focus could change and that it is currently focusing on inflation. did.
“Long-term economic expansion is needed to get the highly competitive and very strong labor market we want,” he said. “Price stability is needed to achieve long-term economic expansion, so high inflation poses a serious threat to achieving maximum employment,” he continued.
Original title:Powell Says Fed Will Raise Rates More If Needed to Curb Prices(excerpt)
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