The Chairman of the US Federal Reserve (Fed) Jerome Powell said that it might take more time than expected to get confidence that inflation is reduced, which is necessary to start reducing interest rates.
Powell held a press conference after the Fed left the interest rate without changes as part of the expectations at a 23-year maximum of 5.25-5.50 percent.
Having stated that, despite a significant decrease in inflation last year, the labor market continues to be strong. He noted that inflation is still very high, there are no guarantees that further progress in a decrease in inflation will be achieved, and its further course is uncertain.
Powell emphasized that they are determined to reduce inflation to a target level of 2 percent.
indicating that the Federal Committee on Open Markets (FOMC) decided not to change the interest rate today and continue to reduce its assets, although more slowly, Powell said that the restrictive position in monetary policy has lower pressure on economic activity and Inflation and balances risks to achieve targeted employment and inflation to the bank.
, however, in recent months, inflation has not been able to advance to our target level of 2 percent, and we continue to be extremely careful about inflationary risks, ”Powell said.