Jerome Powell: Inflation is very, very high and we know it’s causing difficulties

US Federal Reserve Chairman Jerome Powell said inflation is too high and we know it is causing trouble.

“A further 50 basis point increase should be in schedule for the next two Fed meetings, ”Powell added.

He stressed that the main goal is to reduce inflation to return to 2%.

On Wednesday, the Federal Reserve decided to raise the main interest rate by half a percentage point as the most aggressive step to date in its battle against rising inflation.

Along with rising prices, the central bank has indicated that it will begin reducing the holdings of assets on its balance sheet by $ 9 trillion. The Fed was buying bonds to keep interest rates and the flow of money in the economy low, but the rise in rates necessitated a dramatic rethink of monetary policy.

The Fed said the closures linked to COVID-19 in China could exacerbate supply chain problems, as well as the Russian invasion of Ukraine causing enormous humanitarian and economic hardship.

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