6/22, 8:34 PM (Source: TeleTrader)
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Powell: Fed won't raise rates preemptively

United States Federal Reserve Chair Jerome Powell said on Tuesday that the central bank will not raise interest rates "preemptively" if it thinks employment is "too high."

Speaking before the House Select Subcommittee on the Coronavirus Crisis, Powell stressed that Fed intends to wait for "evidence of actual inflation or other imbalances" rather than hiking rates because "we fear the possible onset of inflation."

In his opening remarks at the hearing, the Fed chief stressed that inflation has "increased notably" but pointed out that as the transitory effects, such as the country reopening and supply bottlenecks among others, subside it will fall back down to the central bank's 2% target.

Breaking the News / NP