The Federal Reserve is on track to raise interest rates in mid-March
Federal Reserve Chairman Jerome Powell believes that the Fed is on track to raise interest rates in mid-March.
“Making appropriate monetary policy in this environment requires a recognition that the economy evolves in unexpected ways. We will need to be nimble in responding to incoming data and the evolving outlook,” Powell said in prepared testimony before Congress.
Powell said that it was too soon to tell how the ongoing Russian invasion of Ukraine, and the subsequent sanctions on Russia issued by Western nations, could affect the U.S. economy, the Wall Street Journal reported.
The chairman’s remarks highlight the delicate economic climate that the Federal Reserve must navigate as it raises interest rates for the first time since 2018 amid rapid inflation that could be further exasperated in response to Western sanctions on Russia.
He said, “The near-term effects on the U.S. economy of the invasion of Ukraine, the ongoing war, the sanctions, and of events to come, remain highly uncertain.”- READ MORE
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