Chairman Powell of the Fed = Federal Reserve Board, which is the central bank of the United States, showed the idea that further interest rate hikes are necessary as it will take time to suppress inflation in the capital Washington.
Fed Chairman Jerome Powell held talks with representatives of economic organizations in Washington, D.C. on the 7th.
"There seems to be hope that inflation will subside quickly and painlessly, but that's not the base scenario," Powell said.
The employment statistics for January in the United States released last week confirmed that the growth in the number of employed persons exceeded the market's expectations, and that the serious labor shortage, which is a factor in rising prices, continues.
For this reason, Chairman Powell said that it would take time to suppress inflation and that further interest rate hikes were necessary, and said, ``If employment indicators continue to be strong, we will need to raise interest rates higher than the current forecast. It's possible," he said.
In the New York foreign exchange market on the 7th, after the yen strengthened to the mid-130 yen level against the US dollar for a while, the perception that interest rate hikes will continue over Chairman Powell's remarks spreads, so the US dollar will return to the 131 yen level. It became a rough price movement, such as the dollar was bought back up to.