Powell: Inflation unlikely to hit 2% until late next year or 2024

IconCryptoNewsTerminal Staff02 Jul, 2024

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Powell: Inflation unlikely to hit 2% until late next year or 2024

Federal Reserve Chairman Jerome Powell said in a speech Wednesday that he doesn't expect inflation to get down to the central bank's 2% target until late next year or even 2024. Powell's comments come as the Fed is under pressure to raise interest rates to combat inflation, which has been running at a 40-year high. However, Powell said that the Fed wants to avoid raising rates too quickly, which could damage the economy. "We are committed to bringing inflation back to our 2% target," Powell said. "But we also want to do so in a way that sustains the economic expansion." Powell's comments were greeted with mixed reactions. Some economists said that the Fed is being too cautious and that it needs to raise rates more quickly to bring inflation under control. Others said that the Fed is right to be patient and that raising rates too quickly could hurt the economy and especially impact low-income families.

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