Economic Buzz: Fed Unconditionally Committed To Restore Price Stability

23 Jun 2022 , 10:48 AM

Dollar is under pressure, hurt by Treasury yields wallowing near two-week lows amid rising concerns of a recession. Fed Chair Jerome Powell said in testimony to Congress that the central bank is fully committed to bringing prices under control even if doing so risks an economic downturn. He said a recession was certainly a possibility, reflecting fears in financial markets that the Feds tightening pace will throttle growth. Federal Reserve Chairman Jerome Powell, delivering the first of two days of congressional testimony said that higher rates are painful but are the means the U.S. central bank has to slow inflation. The dollar index, which measures the currency against six key rivals, slipped to 103.91. Inflation as measured by the Consumer Price Index in US is running at 8.6 percent, the fastest pace in more than four decades. The Fed raised its policy interest rate by three-quarters of a percentage point last week, the largest move since 1994, having lifted them by a quarter-point in March and half-point in May. Powered by Commodity Insights