Fed Says Commitment to Restoring Price Stability ‘Unconditional’

Brian Leclere - 20 June 2022 - APP Finance MARKET_WATCH

 The Federal Reserve said it would do what is needed to getting prices under control, reiterating that price stability is needed to support a strong labor market and calling its commitment to reining in inflation “unconditional.”

“The committee is acutely aware that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials,” the Fed said in its semi-annual report to Congress released Friday. “The committee’s commitment to restoring price stability — which is necessary for sustaining a strong labor market — is unconditional.”

The Fed report, which provides lawmakers with an update on economic and financial developments and monetary policy, was published on the central bank’s website ahead of Chair Jerome Powell’s testimony before the Senate Banking panel on Wednesday and the House Financial Services Committee a day later.

Fed officials lifted their benchmark rate by 75 basis points this week — the largest rate increase since 1994 — and signaled that more hikes are coming as they combat an inflation rate at a 40-year high. Powell said the central bank could raise rates by 50 basis points or by 75 basis points in July, depending on what happens with inflation and the economy.

Policy makers decided on a more aggressive rate increase after an inflation report released last week came in hotter than anticipated and some preliminary surveys suggested that consumers’ inflation expectations could be rising.

Fed officials view keeping inflation expectations anchored as an important step to preventing price increases from spiraling out of control. The consumer price index rose 8.6% in May from a year earlier, according to data released by the Labor Department last week.

The central bank’s efforts to calm inflation could lead the US unemployment rate to rise from today’s low levels, a shift Powell said may be needed to cool an overheated labor market. The US unemployment rate was 3.6% in May, slightly above the levels seen prior to the pandemic, when the jobless rate was the lowest in 50 years.

©2022 Bloomberg L.P.

 

Fed Says Commitment to Restoring Price Stability ‘Unconditional’
 

Source: Fed Says Commitment to Restoring Price Stability ‘Unconditional’

    Join our 60k+
    tribe of Akters

    Have any questions?

    We're here to help.

    Learn more

    About the AKTIO coin

    AKTIO is now live!

    Learn more about the AKTIO coin

    What’s new in the App?

    We’re adding new features

    Find out more about the App

    Customer support

    support@akt.io

    +353 1 574 7382

    Opening hours:

    Monday to Friday: 8am - 7pm CET

    Company

    About

    AKTIO coin

    Careers

    News

    Learn

    Blog

    AKT Academy

    Help

    FAQ

    System Status

    Follow our latest news

    Automata Pay

    65-66 Warwick House 4th

    Floor, Queen Street, London

    England, EC4R 1EB

    Automata ICO Ltd

    3rd Floor Ormond Building,

    31-36 Ormond Quay Upper,

    Dublin 7, D07 Ee37

    Automata Pay Europe Ltd

    3rd Floor Ormond Building,

    31-36 Ormond Quay Upper,

    Dublin 7, D07 Ee37

    Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

    Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

    Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.