US Federal Reserve Chairman Powell. People’s visual image
on June 23 local time, US Federal Reserve Chairman Powell testified on the semi annual monetary policy report at the Financial Services Committee of the house of representatives of the US Congress. Powell said that the US Federal Reserve’s commitment to curb inflation was” unconditional “.
” the US labor market is a bit unsustainably overheated, and we deviate too far from the 2% inflation target. ” Powell said, “we really need to restore price stability and bring inflation back to 2%, because without these, we will not be able to achieve maximum employment continuously.”< Br>
Powell also reiterated that the Federal Reserve still hopes to achieve a “soft landing”, while acknowledging that it will be difficult< Br>
“the events of the past few months, especially the war that pushed up the price of natural gas, have made this (soft landing) more challenging,” Powell told the Senate. “We don’t think recession is inevitable.”< Br>
“our (anti inflation) tools are blunt, but they are the right tools to deal with broad aggregate demand.” Powell said< Br>
at the same time, although some Democratic senators warned Powell not to trigger an economic recession, another Powell colleague publicly supported another 75 basis points interest rate hike next month< Br>
on June 24 local time, Michelle Bowman, a director of the Federal Reserve, called for a more radical path of interest rate hike than most of her colleagues currently consider. She said she hoped to keep raising interest rates until they exceeded short-term inflation expectations< Br>
“according to the current inflation reading, I expect it is appropriate to raise interest rates by another 75 basis points at our next meeting, and at least 50 basis points at the next few meetings, as long as future data support these interest rate increases.” In a speech to be delivered at a banking conference in Harridge, Massachusetts, on Thursday, Bowman said that according to the economic response, further interest rate hikes may be required thereafter< Br>
as of press time, according to the “fed observation” tool of Zhishang Institute, the market expects that the probability of the Fed raising interest rates by 50 basis points in July is 3.1%, and the probability of raising interest rates by 75 basis points is 96.9%.