look news india
Mumbai: US Federal Reserve Chairman Jerome Powell and some other top officials avoided giving any indication about when the interest rate would be cut in the US and said that tightening of monetary policy is necessary for the long run. Due to this attitude of the Federal Reserve, the hopes of lowering interest rates in America in the current year have been dashed.
Several published reports quoted Fed officials as saying that inflation had appeared to be moving toward the Fed's two percent target since the beginning of the year, prompting talk of a rate cut, but that recent price pressures Looks to be forming in the opposite direction.
The latest data do not give us much confidence and there are signs that it will take longer than expected to regain confidence, given the strength of the labor market and progress in inflation, said Jerome Powell at a forum in Washington, adding that there is still a need for tight policy. There is a need, he said, “The time has come to make an impact and keep an eye on the data and the emerging landscape.”
Interest rates are likely to remain unchanged at the next meeting of the Federal Open Market Committee. A quarter percent reduction in interest rates in the current year was indicated earlier. The cuts were expected to start from the June meeting, which has now been extended.