The remarks of Federal Reserve Chairman Powell indicate that the Federal Reserve may maintain higher interest rates for a longer period of time. The reason behind this decision is that the Fed needs more evidence to confirm whether high interest rates are effectively curbing inflation. Powell stressed the importance of patiently waiting for more data so that monetary policy can be adjusted if necessary.
Although Powell expects inflation to decline on a monthly basis, the first quarter price data did not meet expectations, which weakened his confidence. The lack of further progress on inflation in the United States is a matter of concern. The Fed believes that the road to fighting inflation is not smooth, and recent data show that inflationary pressures are greater than expected.
These remarks suggest that the Fed may maintain higher interest rates for a longer period of time to cope with inflationary pressures. The purpose of this restrictive policy is to reduce consumption and investment by raising borrowing costs, thereby slowing economic growth and curbing inflation. However, this may also have certain negative effects on the economy, such as slowing economic growth and increasing unemployment. Therefore, when implementing this policy, the Fed needs to weigh the pros and cons to ensure that while curbing inflation, it does not cause too much damage to the economy. #美联储利率 #美联储何时降息？ #鲍威尔 #利率