The Clap Fed Chair Jerome Powell said that “50 basis points will be on the table for the May meeting,” at an IMF-hosted meeting.
Why are rate increases needed, again?
The goal is to restore & maintain price stability, as “economies don’t work without price stability,” said Powell. The Fed’s target inflation rate is 2%, but inflation most recently recorded an 8.5% annual rate.
Why this matters
The statement is in line with expectations, after the Fed hiked rates by 0.25% in March, analysts expected a more aggressive rate moving forward.