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Fed Chair Powell says inflation has been higher than thought
Federal Reserve Chair Jerome Powell emphasized during the annual general meeting of the Foreign Bankers’ Association in Amsterdam that inflation is declining more slowly than anticipated, indicating that the central bank will maintain its current stance for an extended period.
Despite expectations for inflation to decrease over the year, Powell noted that this hasn’t materialized yet.
He emphasized the need for patience and indicated a likelihood of maintaining the current policy rate rather than raising it.
Powell’s remarks echoed sentiments expressed during the May 1 Federal Open Market Committee meeting, where the committee unanimously decided to keep rates unchanged due to a lack of progress in reaching the Fed’s 2% inflation target, CNBC has reported.
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