3 Min(s) Read
Fed Chairman Powell warned that the central bank still has some distance to cover as it tries to bring down inflation to its longer-run goal.
The Federal Reserve on Wednesday raised interest rates by 0.25 percent, citing concerns over inflation and asserting that the crisis-hit banking sector was strong, sound, resilient and well-capitalised. This move has resulted in the current interest rate being set at 5 percent, the highest level seen since June 2006.
However, the Federal Reserve said that additional rate increases “may be appropriate”, indicating that there could still be a possibility of further rate hikes in the future.
The Federal Open Market Committee in a statement said that as there was growth in spending and production and jobs, inflation remained high.