In his statement at the semi-annual monetary policy hearing of the US House Financial Services Committee, Federal Reserve Chair Jerome Powell said that two further rate increases this year would be reasonable.
Powell said that policymakers anticipate higher interest rates to restrain price pressures and slow US growth. After the FED agreed to stop raising interest rates this month, Powell made the announcement.
Additionally, the Federal Reserve has opted to keep interest rates in the 5% to 5.25% level they are currently at. The Federal Reserve made this decision as the first reprieve in the series of interest rate increases it started in March 2022 to address the country's inflation rate.
In response to questions from legislators about the Fed's plans, Powell said that it could be prudent to keep raising rates in the near future. Powell explained how he understood inflation and how FED officials were aware of the difficulties brought on by excessive inflation. He said that they are steadfastly dedicated to getting inflation back down to the target of 2%.
Powell also discussed cryptocurrencies and stablecoins during his speech. He said that as an asset class, cryptocurrencies "seem to have staying power." Powell also said that stablecoins are viewed as a sort of currency.
