UNITED STATES: THE FED WILL CONTINUE TO TIGHTEN ITS POLICY AGAINST INFLATION, ANNOUNCES JEROME POWELL
WASHINGTON (Reuters) – The U.S. Federal Reserve (Fed) will “persist” in tightening monetary policy until lower inflation is evident in the United States, its chairman, Jerome Powell, said on Tuesday. indicating that the central bank would raise interest rates as high as necessary.
“What we need to see is that inflation is coming down in an obvious and convincing way and we are going to persist until we see that,” he told a conference organized by the Wall Street Journal.
“If we don’t see it, we will have to consider acting more aggressively” to tighten financing conditions, added Jerome Powell, stressing that achieving price stabilization was an “unconditional necessity”.
“The economy doesn’t work for workers or businesses or anyone without price stability. It’s the bedrock of the economy,” the Fed boss said.
(Report Howard Schneider and Ann Saphir; French version Bertrand Boucey, edited by Jean Terzian)