US Fed does not rule out another rate hike: Powell

Federal Reserve Chairman Jerome Powell said on Wednesday that the US central bank is moving forward cautiously despite the inflation rate declining significantly.

Inflation still remains elevated and the path forward is uncertain, he told a press conference.

He continued that although the rate is likely at or near its peak in the current tightening cycle, the Fed does not rule out another rate hike.

Powell added that Fed Officials don’t want to keep the possibility of hikes off the table and are discussing the timing for further rate cuts.  

Policymakers expected core inflation, excluding volatile food and energy costs, to decline to 3.1% in November from 3.5% in October.

 He believed that efforts to tame inflation were beginning to take hold, saying: “Inflation has come down from its highs, and this has come without a significant increase in unemployment, which is very good news.”

The Fed kept its benchmark rate at about 5.4%, its highest level in 22 years, indicating the Open Market Committee envisions three interest rate cuts in 2024 by 25 basis points per cut.

 Source : Argaam