China News Service, New York, February 7th (Reporter Wang Fan) US Federal Reserve Chairman Jerome Powell said on the 7th that in view of the latest employment report from the Labor Department showing the strength and resilience of the labor market, the Federal Reserve will need to raise interest rates further to curb the Inflation, terminal interest rates may reach higher levels than previously expected.

　　Powell made the above statement at a question-and-answer session at the Economic Club of Washington that day.

He noted that if the labor market continues to be "hot," the Fed will have to do more to "cool" inflation, which will be a "long process."

The Fed may eventually need to raise interest rates higher than previously expected between 5% and 5.25%.

　　Of greatest concern, Powell said, was inflation related to core services, excluding housing.

Overall, U.S. inflation should come down significantly this year, but bringing inflation down to the Fed's 2 percent target will likely not be achieved until next year, he said.

　　On the same day, Minneapolis Fed President Kashkari, who has the right to vote on monetary policy in 2023, said that the Fed has not made enough progress to declare victory.

He expects the Fed's terminal interest rate in this round of interest rate hike cycle will reach around 5.4%.

　　After last week's monetary policy meeting, the Federal Reserve announced that it will raise the target range of the federal funds rate by 25 basis points to a level of 4.5% to 4.75%.

Immediately following the 3rd, the U.S. Department of Labor released a report showing that the U.S. added 517,000 new jobs in the non-agricultural sector in January this year, and the unemployment rate was 3.4%, the lowest level since 1969.

　　According to Bloomberg's analysis, the strength of the labor market will stimulate wage growth and further solidify the trend of rising prices.

Recent comments from Fed officials suggest that officials have not seen much impact from tightening monetary policy in the labor market and that the Fed will continue to raise interest rates until there is "substantial evidence" that convinces them that inflation is on a sustained downward trajectory superior.

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