The Federal Reserve Chairman Jerome Powell confirmed yesterday (Tuesday) that the disinflation process has begun, but in comments awash with mixed messages also indicated that rate hikes will continue.
He said the Federal Reserve expects inflation rates will continue to fall this year, but that the 2% target won’t emerge until next year amid ongoing struggles in the service sector. He said, “We anticipate that ongoing rate increases will be appropriate. We expect significant progress with inflation this year. It is our job to produce it. But the reality is we depend on the data. If we keep getting higher inflation reports, it may well be the case we might have to raise more.
He indicated that additional rate hikes will happen saying, “We will need to do more rate increases. If the data were to continue to come in stronger than we expect and we conclude we need to raise more, we would do that.”
Gold ended 0.14% up on the day’s prices in the aftermath of his remarks. Don’t delay. Buy now.
