{"id":18474,"date":"2023-03-08T20:34:40","date_gmt":"2023-03-08T20:34:40","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/fed-chair-warns-of-higher-interest-rates-than-previously-anticipated-faster-hikes-economics-bitcoin-news\/"},"modified":"2023-03-08T20:34:40","modified_gmt":"2023-03-08T20:34:40","slug":"fed-chair-warns-of-higher-interest-rates-than-previously-anticipated-faster-hikes-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/fed-chair-warns-of-higher-interest-rates-than-previously-anticipated-faster-hikes-economics-bitcoin-news\/","title":{"rendered":"Fed Chair Warns of Higher Interest Rates Than Previously Anticipated, Faster Hikes \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

Federal Reserve Chairman Jerome Powell has warned that \u201cthe ultimate level of interest rates is likely to be higher than previously anticipated.\u201d In addition, if faster tightening is warranted, the Fed \u201cwould be prepared to increase the pace of rate hikes,\u201d Powell said.<\/strong><\/p>\n

The Fed Anticipates Higher Rates, Faster Hikes<\/h2>\n

Federal Reserve Chairman Jerome Powell presented the Fed\u2019s semiannual Monetary Policy Report to the Senate Committee on Banking, Housing, and Urban Affairs on Tuesday and the House Committee on Financial Services on Wednesday.<\/p>\n

\u201cMy colleagues and I are acutely aware that high inflation is causing significant hardship, and we are strongly committed to returning inflation to our 2% goal,\u201d Powell said in his identical remarks to both the Senate and House committees. He detailed:<\/p>\n

\n

Over the past year, we have taken forceful actions to tighten the stance of monetary policy. We have covered a lot of ground, and the full effects of our tightening so far are yet to be felt. Even so, we have more work to do.<\/p>\n<\/blockquote>\n

\u201cThe data from January on employment, consumer spending, manufacturing production, and inflation have partly reversed the softening trends that we had seen in the data just a month ago,\u201d Powell continued.<\/p>\n

Citing inflation well above the Fed\u2019s 2% goal and an \u201cextremely tight\u201d labor market, he noted the Federal Open Market Committee (FOMC) meeting raised interest rates by 4-1\/2 percentage points over the past year. \u201cFrom a broader perspective, inflation has moderated somewhat since the middle of last year but remains well above the FOMC\u2019s longer-run objective of 2%,\u201d Powell described, emphasizing:<\/p>\n

\n

We continue to anticipate that ongoing increases in the target range for the federal funds rate will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.<\/p>\n<\/blockquote>\n

While acknowledging that \u201cinflation has been moderating in recent months,\u201d the Federal Reserve chairman stressed that \u201cthe process of getting inflation back down to 2% has a long way to go and is likely to be bumpy.\u201d<\/p>\n

Cautioning that restoring price stability will likely require the Fed to \u201cmaintain a restrictive stance of monetary policy for some time,\u201d Powell concluded:<\/p>\n

\n

The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.<\/p>\n<\/blockquote>\n

What do you think about Fed Chair Powell\u2019s statements? Let us know in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n