Jerome Powell says inflation is still above the 2% target, signaling further interest rate hikes.

On June 22, 2566, Jerome Powell, Chairman of the Federal Reserve (Fed), signaled that the Fed will continue to raise interest rates. Until there is more progress on slowing inflation.

Mr Powell is scheduled to speak to Congress this week on the US economy. and the Fed's monetary policy By giving a statement to the House of Representatives' Financial Services Committee today before addressing the Senate Banking Committee tomorrow.

Mr Powell said The Fed held interest rates steady at last week's monetary policy meeting. It's just a temporary suspension of interest rate operations. rather than indicating that the Fed has ended its rate-raising cycle.

“Almost every member of the FOMC thinks it is appropriate for the Fed to continue raising interest rates by the end of this year,” Powell said. Adding that Inflation has slowed down. But it's still well above the Fed's 2% target, which means the Fed still has work to do.

Mr Powell also stated that lowering the inflation rate It is imperative that the economy slows down below the trend level.

The Fed chairman stressed that interest rate decisions will be based on information the Fed receives at each of its meetings. Rather than having to set a flag to set guidelines in advance.

In addition, Mr Powell said The labor market remains tight. Although there are signs that the condition is easing down More people aged 25-54 have entered the labor market. While wages have slowed down

Powell, meanwhile, addressed the turbulence in the banking sector earlier this year, saying it was a reminder that the Fed needed proper regulation and oversight.