Fed Chair Jerome Powell indicated that it’s appropriate to continue tightening. But the Committee would like to assess additional information, before making meeting-by-meeting decisions.
In the prepared remarks for the Semiannual testimony to Congress, Powell said, “Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year.”
“But at last week’s meeting, considering how far and how fast we have moved, we judged it prudent to hold the target range steady to allow the Committee to assess additional information and its implications for monetary policy,” he added.
In determining future actions, Fed will take into account, “account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments”.
“We will continue to make our decisions meeting by meeting, based on the totality of incoming data and their implications for the outlook for economic activity and inflation, as well as the balance of risks,” He said.
