US Federal Reserve to move ‘carefully’ on interest rates, says Chair Jerome Powell; notes easing inflation

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Also Read: US stock market ends higher as Powell raises peak rate hopes; S&P logs highest close of year He also noted that the “full effects" of the Fed’s 5.25 percentage points of rate hikes to date have likely not yet been felt, Reuters reported. “We are getting what we wanted to get" out of the economy, Powell said during an event at Spelman College in Atlanta.

“Having come so far so quickly, the (Federal Open Market Committee) is moving forward carefully, as the risks of under- and over-tightening are becoming more balanced," he said, referring to the central bank’s policy-setting committee, the Reuters report added. As the Fed goes forward, "the data will tell us if we need to do more" rate hikes, Powell said.

In line with the statements of several Federal Reserve Governors, Powell reiterated that it was still too early to declare the Fed’s inflation fight finished, with prices rising 3.0% annually by the measure the central bank uses to set its target. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “We are prepared to tighten policy further if it becomes appropriate to do so," he said.

Powell’s remarks also reflected increased confidence that the current 5.25%-5.50% policy rate may well be adequate to complete the job, Reuters reported. Powell also said that the broad outlines of the hoped-for “soft landing" seemed to be falling into place, with the job market still strong even as growth in spending and output slows and price pressures abate.