The Federal Reserve recently issued a statement from its Chairman, Jerome Powell, indicating that the central bank must be prepared to keep raising interest rates for longer than anticipated. This comes as a result of the current economic conditions and potential changes in the near future that may require further rate increases.
Chairman Powell noted that while it is difficult to predict how long this period of higher rates will last, he believes it is important for policymakers to remain flexible and ready to adjust their plans if necessary. He also stressed the importance of taking into account both short-term risks and long-term goals when making decisions about monetary policy.
In addition, Chairman Powell pointed out that although there are some signs of an improving economy such as lower unemployment numbers and stronger wage growth, inflation remains weak which could indicate more rate hikes ahead to reach target levels set by The Federal Reserve Board Of Governors (FRB). Overall this announcement reflects The FRB’s commitment to maintaining financial stability through appropriate monetary policies over time regardless of any unexpected events or developments in global markets or economies around the world.
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