It is time for central banks in the United States to begin raising umbrella interest rates. Federal Reserve Chairman Jerome Powell reiterated at Wednesday’s meeting that inflation should be “prolonged” to 2 percent and that labor markets should recover before interest rates rise.
Earlier, policymakers talked about maintaining the current low interest rates of 0 to 0.25 percent by 2023. Powell stressed that some of the central bank executives are even talking about 2024. “Markets are more focused on what we consider to be economic forecasts, and more focused on the effects I have described,” Powell said.
He said the United States was entering a period of rapid economic growth and job creation, and that a new spike in Govt 19 infections was making it more difficult to treat with viral variants. The federal leader said it would be wise to continue to wear a mask and maintain social distance for the time being.
At last month’s policy meeting, the central bank found no reason to support the ongoing support measures. The promise set a record for US stock markets.
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