Jerome Powell Keeps June Interest-Rate Pause in Play

Jerome Powell Keeps June Interest-Rate Pause in Play

Federal Reserve Chair Jerome Powell suggested that he was open to holding interest rates steady at the central bank’s meeting next month, saying that the current banking stress could mean rates may not need to rise as high as otherwise to slow the economy, The Wall Street Journal reported. “Until very recently, it has been clear that further policy-firming would be required. As policy has become more restrictive, the risks of doing too much versus doing too little are becoming more balanced,” Powell said at a conference hosted by the central bank. The Fed has raised its benchmark federal-funds rate rapidly over the past year to fight inflation, most recently this month to a range between 5% and 5.25%, a 16-year high. Officials have indicated that their decision on whether to raise rates again at their June 13-14 policy meeting could be a close call. A handful have said inflation and economic activity aren’t slowing enough to justify leaving rates unchanged. But others, including Powell, have hinted that they might skip a rate rise to assess the effects of their past increases and the banking-sector strains. While the Fed hasn’t made any decisions about upcoming moves, “given how far we have come, we can look at the data and evolving outlook and make careful assessments,” Powell said. (Subscription required.)
Article Tags: 
Please note that in order to view the content for the Bankruptcy Headlines you must either sign in if you are already an ABI member, or otherwise you may Become an ABI Member