US Federal Reserve (Fed) officials used a stern tone on Friday to describe their approach to inflation, promising a comprehensive effort to restore price stability, CNBC reported.
In its annual monetary policy report – a harbinger of President Jerome Powell appearing before Congress next week – the bank promised to launch a full-scale effort to ease inflationary pressures over the past 40 years. .
“The Commission’s commitment to restoring price stability – which is essential to maintaining a strong labor market – is unconditional,” the Fed said in a report to Congress.
This marks the Fed’s strongest statement to date, reaffirming its commitment to continue raising interest rates and tightening its policy to address the economy’s primary problem.
It is not clear what the Fed means by the “unconditional” statement.
It is recalled that earlier this week, the Fed raised interest rates by 75 basis points in a further effort to slow demand. Market analysts worry that the tightening of the Fed’s policy could lead to a recession, although Powell said he still believes it can be avoided.
This increase in interest rates came after May by 50 basis points. This week ‘s move was the most aggressive since 1994.
Earlier in the day, Powell spoke of a similar commitment, saying he and the rest of the Fed were “strongly focused” on reducing inflation.
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Source: Capital
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