Federal Reserve Chairman Jerome Powell said that the central bank is committed to combating elevated inflation by raising interest rates until it comes down, according to an interview he gave to The Wall Street Journal’s Future of Everything Festival.
“We will go until we feel like we are at a place where we can say, ‘Yes, financial conditions are at an appropriate place. We see inflation coming down,’” Powell said in the May 17 interview. “We will go to that point, and there will not be any hesitation about that.”
At present, the Fed is maintaining the interest rate between the range of 0.75 and 1 percent. Over the next 12 to 18 months, interest rates could be raised up to 4 percent if inflation does not show any signs of coming down. Two months back, most Fed officials were expecting rates to rise to a maximum of 3 percent….