Fed Chair Powell Discusses Game Plan for Combatting Rise in Inflation
On May 17, Federal Reserve Chair Jerome Powell in a Wall Street Journal interview stated he is committed to taking interest rates as high as necessary to get inflation headed in the direction of the central bank’s 2% target. This comes after earlier this month, the Fed raised benchmark borrowing rates by half a percentage point, the second increase of 2022 as inflation reached around a 40-year high. Fed officials continue to stress that the rise in inflation is only temporary. Powell highlighted his hope is that the central bank can curtail high inflation without leading to a large rise in unemployment. Read more.