By Yasin Ebrahim
Investing.com – Federal Reserve Chairman Jerome Powell said Thursday, the recent spike in rates was “notable” but stressed the central bank would continue the current pace of bond buying and low-level interest environment until substantial progress is made on its job creation and inflation goals.
Powell said the pace of the increase in rates last week “was something that was notable and caught my attention,” but attempted to quell investor fears that the central bank will act sooner than expected. “For asset purchases, they’ll continue at least at the current level, until we achieve substantial further progress toward our goals. That’s actual progress, not forecast progress,” he added. “There’s good reason to think we’ll begin to make more progress. But even if it happens, it’s likely to take some time to achieve substantial further progress, or interest rates to raise interest rates above zero.”
The Fed chief also downplayed the worries about a pick up in inflation, reiterating that any post-pandemic surge in prices is unlikely to be sustainable, though added that the Fed would act if conditions do change materially. “If conditions do change materially we’ll be prepared to use our tools in whatever way is appropriate at that time to foster the achievement of our goals.”
Powell Says Rate Spike ‘Notable,’ but Fed to Stick With Status Quo
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