Fed Chair Jerome Powell, speaking at an IMF event, conveyed a vigilant stance on monetary policy, expressing uncertainty over whether current interest rates are adequate to curb inflation. With a steadfast commitment to FOMC’s inflation target, Powell emphasized the readiness to adjust policy in response to economic indicators.
“The FOMC is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance,” Powell stated
At the same time, “we are not confident that we have achieved such a stance,” he added.
Highlighting the deceptive nature of recent inflation trends, he added, “Inflation has given us a few head fakes”. Hence, “ongoing progress toward our 2 percent goal is not assured”
Powell was unequivocal about the Fed’s resolve: “If it becomes appropriate to tighten policy further, we will not hesitate to do so.”
