“Looking ahead, almost all Committee participants consider it likely that some additional rate increases are appropriate this year to drive inflation toward the 2% target” the agency is aiming for, he said.
Powell said it looks like the central bank will be able to continue to reduce its balance sheet on its current path, probably for the remainder of the year.
“We don’t think reserves are going to get tight anytime soon or even over the course of the year,” suggesting the central bank may continue to dump just under $100 billion a month in bonds from its holdings, he said.
The Federal Reserve chairman commented that the central bank’s next rate-setting meeting in July would be a “live” meeting, after officials opted to forgo an interest rate hike this month.
Powell’s remarks came after the Federal Open Market Committee left its benchmark rate between 5% and 5.25%, but officials’ forecasts showed they expect another half percentage point rise by the end of the year.
With information from agencies