Powell: The US Federal Reserve must act quickly to reduce inflation

WASHINGTON (Archyde.com) – Federal Reserve Chairman Jerome Powell said on Monday the US central bank must act “urgently” to bring down high inflation, adding that it may use larger-than-usual increases in interest rates if necessary.
“The labor market is very strong and inflation is very high … there is a clear need to act urgently to bring the monetary policy stance back to more neutral levels and then move to more restrictive levels if that is what is needed to restore price stability,” Powell added.
In particular, he said, “if we conclude that it is appropriate to move more aggressively to raise the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so.”
Powell also repeated that the Fed’s cuts to its massive balance sheet could begin as early as May.