US interest rate hike not on the horizon, says Jerome Powell

Reuters Updated - December 19, 2024 at 02:32 AM.

Powell emphasised that while the current rate of 4.3% is considered “meaningfully restrictive,” it is a well-balanced level that allows for progress on inflation while supporting a robust labour market

U.S. Federal Reserve Chair Jerome Powell speaks during a press conference where he announced the Fed had cut interest rates by a quarter point following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., December 18, 2024. | Photo Credit: Reuters

U.S. Federal Reserve Chair Jerome Powell said on Wednesday that an interest rate hike does not appear to be a likely outcome as the Fed works to bring inflation down to its 2% target.

"You don't rule things completely in or out in this world. That doesn't appear to be a likely outcome," Powell told a news conference when asked if he could rule out a rate increase as the Fed slows the pace of future cuts.

"I think we're 4.3%, but that's meaningfully restrictive, and I think it's a well calibrated range for us to continue to make progress on inflation while keeping up a strong labor market," he added.

Published on December 18, 2024 21:02