The Federal Reserve will continue to increase interest rates and maintain them at a reasonable level until inflation returns to 2%, as price increases have yet to stabilize despite showing signs of slowing down, said FED Chairman Jerome Powell on Wednesday. The FED may slow rate hikes in December, at the earliest. Previous hikes have pushed the US economy to the verge of recession.

The FED increased the base rate to 3.75 – 4% from 0% in the early phases of COVID-19. Some economists and lawmakers have urged the FED to stop increasing interest rates for fear of a recession, noting that the FED’s rate hikes have not solved the causes of inflation – energy and food crises due to the Ukraine conflict and American job loss.

Source: VOV5