Fed Chairman Jerome Powell expressed their determination to reduce inflation.
Powell said the Fed could deliver a “soft landing” for the US economy rather than a severe downturn.
Speaking at a Wall Street Journal event, Powell said there are reasonable ways to “make a soft landing”.
Powell stressed that the Fed is committed to lowering inflation and that doing so “may be a bit of a pain”.
“What we need to see is inflation coming down clearly and convincingly. We’ll keep pushing until we see it.”
Powell said that financial conditions have tightened faster than a long time ago.
Powell said that there could be a half-point rate hike in June and July.
“There was broad support in the committee for considering the idea of increasing 50 basis points in the next two meetings.
Powell said there must be “clear and convincing evidence that inflation pressures are easing and inflation is falling” to slow the pace of rate hikes. He also stated that the Fed would not hesitate to raise interest rates above “neutral”.
