Inflation is preventing interest rates from rising faster, says Powell
Labour market progress points towards a faster pace of normalisation for the Fed
Below-target inflation is preventing the Federal Reserve from upping its pace when it comes to raising interest rates, a governor of the Federal Reserve has said.
Speaking in New York on June 1, Jerome Powell said the recent performance of the labour market could “warrant a faster pace of tightening” but below-target inflation was staying the central bank’s hand.
“Inflation has been below target for five years and has moved up only slowly toward 2%, which argues for continued patience
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