Federal reserve will aggressively raise interest rates, but balancing this against inflation could prove “challenging”
Jerome Powell speaks during a luncheon at the 2022 NABE Economic Policy Conference in Washington, DC, March 21, 2022 © Getty Images / Samuel Corum/Getty Images)
Federal Reserve Chairman Jerome Powell said on Monday that the central bank will raise interest rates “more aggressively” in order to get spiraling prices under control. However, he acknowledged that doing this without crashing the economy would prove “challenging,” and cautioned that a “soft landing” is not guaranteed.
Powell made his comments in a speech to the National Association for Business Economics, which was reported by multiple US news outlets.
“We will take the necessary steps to ensure a return to price stability,” he said. “In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so.”