Fed Chair Jerome Powell said in a panel discussion at the ECB forum that the “the clock is kind of running on how long will you remain in a low-inflation regime … The risk is that because of the multiplicity of shocks you start to transition into a higher inflation regime and our job is to literally prevent that from happening and we will prevent that from happening,”
Fed’s “aim” now is to raise interest rates without trigger a recession. And, ” we believe there are pathways to achieve that”.
“We hope that growth will remain positive,” Powell. “Overall the US economy is well positioned to withstand tighter monetary policy.”