Chairman of the US Federal Reserve Jerome Powell, during a speech at a press conference, said that the sharp rise in the Fed rate probably will not be the last, since inflation in the country remains too high. Following the results of yesterday's meeting of the central bank, it was decided to raise the rate immediately by 75 bps. At the same time, the regulator did not rule out the possibility of an increase in the rate by another 50 bps or 75 bps at the July meeting. Powell also noted that the Fed has all the necessary tools to combat high inflation and restore price stability. After the July rise, the rate level will be the closest to the normal level, which will give the Central Bank's leadership the opportunity to think over further actions. According to the head of the Fed, the US rate should reach a level limiting economic activity in order for inflation to weaken. Powell also shared comments on the current situation in the American economy. He noted the presence of signals of accelerating GDP growth in the second quarter and the stability of consumer spending indicators. At the same time, the rate of increase in business investment in fixed assets is slowing down, and activity in the housing market has weakened in the face of rising mortgage rates. In general, the Fed lowered its forecasts for US GDP growth for 2022-2024, however, according to management, the Fed will still be able to avoid a recession.
