Daily Management Review

US Federal Reserve chief: Fed ponders raising rates


US Federal Reserve Chairman Jerome Powell said that he was ready to start raising interest rates to avoid overheating the economy. However, he expressed optimism that supply-chain disruptions will be tapered off this year, slowing the rate of inflation.

The central bank will use its tools "to prevent higher inflation rates from taking root", Powell said during the US Senate hearing to confirm his candidacy for a second term as Fed chief.

Powell, who is a member of the Republican Party, is expected to continue to lead the US central bank. The country's annual inflation rate is near its highest levels in four decades and the Fed chairman was asked on Tuesday how he would implement monetary policy tightening to combat the acceleration in price growth.

Powell replied that he hoped for a "return to supply-side normality this year. However, he added that "if we see continued high inflation over a longer period than expected and we have to raise interest rates even higher over time, then we will do so".

source: dowjones.com