JUNE 26, 2023 – POWELL TESTIFIES BEFORE HOUSE FINANCIAL SERVICES COMMITTEE
Fed Chair Jerome Powell stated the Fed will not be lowering interest rates until inflation comes down significantly. Further Powell told the committee that it is a “pretty good guess” the central bank will raise rates two more times this year. Inflation pressures remain high and there is a long way to go to reach the 2 percent target. Powell assured the lawmakers that the Fed will adapt to changing conditions.
The Fed is now waiting on data releases to direct when rates will move. Retail spending was up last month, the labor market remains strong and the anticipated recession has yet to materialize. With an economy that’s holding its own, rates hikes are almost certain. The Fed’s next meeting takes place July 25-26, and financial markets see a 72 percent chance rates will go up another quarter point then.