“Powell Sounds Alarm: More Rate Hikes May be On The Way

by Safe Retirement Reports

Fed Chair Powell’s statements this week during his town hall talk certainly caught many off guard. On Tuesday, he stressed that talk of cutting interest rates was premature and that more rate hikes could happen in the foreseeable future.

The Federal Reserve chair was clear that despite current economic conditions, he still believes that the economy is in a strong position. He did, however, acknowledge that the Fed was keeping an eye on rising private debt levels, as it could potentially become a risk factor if not addressed in a sensible manner.

In his remarks, Powell also addressed recent reports that the Fed was thinking of cutting interest rates. He said that any decision by the Fed to lower rates was “premature” and that the central bank was still focused on the long-term goal of their dual mandate — namely, maximum sustainable employment and price stability.

He also noted that it was too early to be making any definitive judgments on the economy and that the Fed was still gathering data to assess the true state of the U.S. economy.

Powell’s statements demonstrate that while the central bank is monitoring current economic developments, it is not yet convinced that we should be taking dramatic actions to ease monetary policy. This could mean that we are still in store for further hikes in the Federal Funds Rate in the near future.

The Fed Chair’s message is sure to be seen as a win by many investors and businesses who have grown weary of the former administration’s lax monetary policies. It is also a reminder that the Fed is committed to bringing balance back to the economy and keeping it on a sustainable growth track.

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