This statement signifies that the Federal Reserve Chairman, Jerome Powell, is acknowledging that inflation has exceeded their initial predictions. However, he also expects that interest rates will not be increased or decreased anytime soon. He might be implying that the Fed is not feeling threatened enough by inflation to make a shift in its current monetary policy stance. Nevertheless, this could evolve depending on different factors such as unemployment rate, economic growth and inflation progression. It’s important to keep an ear on declarations from the Fed as they can have an impact on markets and investment strategies.
Fed Chair Jerome Powell says inflation has been higher than thought and expects rates to hold steady
