Federal Reserve Chairman Jerome Powell alleviated some concerns of a looming economic recession after he rejected the possibility of an even larger interest rate hike than the one announced by the U.S. central bank on Wednesday.
Crossmark Global Investments CIO joins 'The Claman Countdown' to discuss the state of the economy after the Fed's decision on interest rates.alleviated some concerns of a looming economic recession after he rejected the possibility of an even larger interest rate hike than the one the U.S. central bank announced on Wednesday.
"A 75-basis point increase is not something that the committee is actively considering," Powell told reporters at the post-meeting press conference. The Fed also announced it will start reducing its massive $9 trillion balance sheet, which nearly doubled in size during the pandemic as the central bank bought mortgage-backed securities and other treasurys to keep borrowing cheap. In a plan outlined Wednesday, the Fed indicated that it will begin winding down the balance sheet June 1 at an initial combined monthly pace of $47.5 billion, a move that will further tighten credit for U.S. households.
"Inflation is much too high," Powell told reporters at a post-meeting news conference. "We understand the hardship it is causing, and we’re moving expeditiously to bring it back down. We have both the tools we need and the resolve that it will take to restore price stability on behalf of American families and businesses."
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