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Jerome Powell, Chairman of the US Federal Reserve
Photo: POOL / REUTERS
To combat the high inflation rate, the US Federal Reserve will consider raising interest rates by 0.5 percentage points at its next meeting in early May.
Central Bank Chairman Jerome Powell said at an International Monetary Fund (IMF) event in Washington.
With inflation and the 0.25 percentage point hike in interest rates in March, it was "appropriate to move a little faster," Powell said.
Powell said a 50 basis point hike would be up for discussion at the May 4 Fed Council meeting.
The aim is to use the central bank's tools in such a way that supply and demand adjust again and inflation goes down.
The economy should cool down in a way that doesn't amount to a "recession," Powell said.
'It will be a great challenge.
We will do our very best to achieve [this goal],” Powell promised.
"And restoring price stability is absolutely crucial," he stressed.
This is the prerequisite for a strong job market and stability on the financial markets.
The key interest rate for the world's largest economy has been in the range of 0.25 to 0.5 percent since March.
On the markets, increases of more than two percentage points are expected for this year alone.
The pressure on the Fed is great.
Because inflation in the USA recently rose to 8.5 percent and thus the highest value for more than 40 years.
This reduces the purchasing power of consumers.
In March, consumer prices rose by 8.5 percent compared to the same month last year.
The Fed is aiming for an inflation rate of two percent in the medium term.
atb/dpa/AFP
