The US Federal Reserve Chairman expects interest rates to continue to rise to curb inflation and economic growth

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US Federal Reserve Chairman Jerome Powell said on Wednesday, that the members of the Federal Reserve expect the continued need to raise interest rates to reduce the rate of inflation and economic growth, despite the Council’s decision last week to fix interest rates.

“At the beginning of the rate hike round, speed was very important,” Powell said in his testimony before the US House of Representatives Financial Services Committee, referring to the pace of US interest rate increases over the past year, adding, “Speed ​​is no longer important now”.

In his response to Financial Services Committee members’ questions about the council’s plans, Powell said, “It may be logical to continue increasing interest rates in the coming months, but at a more moderate pace,” indicating that the timing of the new interest increases will depend on the nature of upcoming economic data.

Last month, the Federal Reserve announced that key interest rates would remain at their current level, between 5% and 5.25%, unchanged, after 10 consecutive increases, which was in line with analysts’ expectations.

Since March 2022, the Federal Reserve has raised key interest rates by 5 percentage points to rein in inflation, which has reached its highest level in more than 4 decades.

Meanwhile, the cycle of US interest rate increases was one of the fastest and most aggressive in the history of the Federal Reserve.

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