The US Federal Reserve Chairman Jerome Powell said on 3rd May press conference that wages are not principal drivers for inflation. He was speaking about the latest Fed decision to raise rates by 25 basis points and the Fed’s targets about maximum employment and 2% inflation over time.
According to him, the Fed will continue to monitor the price stability and target the 2 % inflation over time. Powell said the governors are working with the target, but noticed it will take its time.
He reminded the Fed will make monetary decisions by incoming data meeting be meeting. He confirmed also that slowing down the rate hike pace was a right move but declined to further estimate if the 6 weeks interval is enough for data analysis or does it need more time. The next monetary FOMC meeting will be in June.
Powell estimated also that the recent banking turmoil in the US regional banks will tighten the regulatory actions and supervision further. According to him, it is wise to identify the things and to make sure it will not happen again.
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