Inflation message from Fed Chairman Powell!
US Federal Reserve (Fed) Chairman Jerome Powell answered questions from members of the Financial Services Committee of the US House of Representatives on the second day of his presentation on the semi-annual Monetary Policy Report in the US Congress.
On the question of whether the interest rate cut decision will be taken after reaching a certain target in inflation or based on the general course of the inflation rate, Powell noted that they took all the data into account and that there is no specific number to be reached.
Powell: "Are you sure inflation is on a downward trend?" "I have some confidence in that." he replied.
"The question is, are we confident enough that this is sustainably down to 2 percent? I'm not ready to say that yet," the Fed Chairman said. he said.
Pointing out that the latest readings show progress, Powell reiterated that more good data will strengthen confidence that inflation has fallen to the 2 percent target.
Answering questions about the Fed's balance sheet, Powell stated that the bank has already reduced its balance sheet size by approximately 1.7 trillion dollars.
Stating that they have "made quite a bit of progress" in reducing the size of the balance sheet, Powell said, "We think we still have a way to go." said.
Fed Chairman Powell attended the session held at the Banking, Housing and Urban Affairs Committee of the US Senate on the first day of his presentation on the semi-annual Monetary Policy Report in the US Congress.
Stating that the data for the first quarter of this year did not support confidence in reducing the interest rate, Powell pointed out that they were looking for "more good data" for the interest rate cut.
