The Governor of the United States (US) Central Bank, Jerome Powell, on Tuesday (11/1), said his party would raise interest rates sooner than originally planned if needed to stem the soaring price of basic commodities.
This effort will be made by the Central Bank after predicting that high inflation will threaten the labor market to return to a healthy condition.
“If we have to raise interest rates more over time, then we will,” Powell said at a hearing before the Senate Banking Committee. The committee is considering his re-election for a second term that will run for four years.
Fed officials have predicted three hikes to the main interest rate this year, although economists expect four hikes in 2022. [jm/em]