US Federal Reserve chair Jerome Powell has left the door open for additional rate of interest hikes throughout a carefully watched handle on the financial institution’s annual coverage symposium in Jackson Hole, Wyoming.
“It is the Fed’s job to bring inflation down to our 2.0 per cent goal, and we will do so. We have tightened policy significantly over the past year,” Powell stated.
“Although inflation has moved down from its peak – a welcome development – it remains too high. We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective,” he added.
Borrowing prices shall be stored excessive till inflation is on a sustainable path in the direction of the inflation goal, he stated.
At its most up-to-date assembly on the finish of July, the US central financial institution raised the important thing rate of interest by 0.25 proportion factors to a variety of 5.25 per cent to five.50 per cent.
At the earlier assembly, it had pushed pause for the primary time within the present hike cycle.
Source: www.perthnow.com.au
