Powell: Fed will remain firmly committed to curbing inflation to avoid recession

　　China News Agency, Washington, June 22 (Reporter Sha Hanting) US Federal Reserve Chairman Powell said in a congressional hearing on the 22nd local time that the Fed will be "firmly committed" to raising interest rates to curb inflation and strive to avoid recession. .

　　Powell attended the Senate Banking Committee hearing on the same day.

Lawmakers from both parties expressed concern about the current inflation situation.

Some Democrats worry that the Fed's continued interest rate hikes will push the economy into recession; some Republicans blame Powell for failing to act in time for the current situation.

　　In the face of doubts from lawmakers, Powell said that the Fed will be firmly committed to curbing inflation, and has taken rapid action, "We have the ability and determination to bring prices back to stability."

　　Powell also said that the overall U.S. economy is in good shape, with a strong job market and strong demand, but there is still a "possible" recession.

Powell stressed that the Fed's goal is to achieve a "soft landing" that will keep inflation in check without causing a recession.

　　Powell also said that inflationary pressures have been exacerbated by a series of events over the past few months, including the Russian-Ukrainian conflict and supply chain bottlenecks.

　　In response to inflation, the Federal Reserve has raised interest rates three times this year, raising interest rates by 25 basis points in March, 50 basis points in May and 75 basis points in June.

　　According to data released by the US Department of Labor on the 10th of this month, the US consumer price index (CPI) rose by 8.6% year-on-year in May, the highest value in 40 years.

　　Regarding future expectations, Powell said that it would be "appropriate" to continue raising interest rates at present, and the specific rate of interest rate hikes will be determined according to inflation data and future economic expectations.

The Fed's goal is to keep long-term inflation at 2%.

　　As the Federal Reserve continues to raise interest rates, some institutions believe that the risk of a recession in the United States has increased.

According to Goldman Sachs, there is a 30 percent chance that the U.S. economy will enter a recession next year and a 48 percent chance of a recession in the next two years.

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