18 May 2022 • Daily News • Less than a min

Fed’s Powell to Do Whatever It Takes to Fight Inflation

The dollar index has risen 15% in value against other currencies since January, thanks to the Federal Reserve’s hawkish tilt on inflation.

Furthermore, the Fed is not yet ready to take its foot off the gas pedal. In fact, the central bank might only be gearing up for a more powerful move to tackle continuously hot inflation prints. On Tuesday, Chairman Powell emphasized his resolve to back more aggressive interest rate hikes until inflation is at a healthy level.

To handle rising prices, Powell remarked that it could come at the expense of today’s record-low unemployment.

The Fed’s monetary policy has boosted the US dollar, making foreign goods less expensive in the US. In addition, it has increased worldwide demand for dollar-denominated investments.

In the aftermath of extraordinary monetary support, the Fed is already feeling the heat as it struggles to control inflation. According to analysts at Goldman Sachs, the chances of a recession are at 38% as households and businesses struggle to keep up with rising prices.

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