Fed’s Powell: Process of getting to 2% inflation target has a long way to go

  • A strong majority of the FOMC expects it to be appropriate to hike rates two or more times by the end of the year
  • Labour market is very tight
  • Inflation is well above the goal currently
  • Extent of effects from tighter credit conditions remains uncertain
  • Cannot take resilience of financial system for granted
  • it will take time for the rest of the economy to feel the full impact of rate hikes to date

In case anyone’s counting, there is still just four more Fed meetings to go for the year. The comments from Powell reaffirms the narrative that the central bank might have indeed just voted to “skip” the June decision and hike again in July.

This article was written by Justin Low at www.forexlive.com. Source