The U.S. Federal Reserve announces that it will once again jack up policy rates to the 2.25%-2.50% range.
The news was confirmed early Wednesday by U.S. officials, making it loud and clear that the Federal Reserve will stick to its logic in times like these of economic weakness and struggling periods in the market. This has been the most intense inflation hit on the U.S. since the 1980s.
Federal Chair Jerome Powell shoots down the notion that the nation is living through a recession-like period, in large part because American firms continue to employ hundreds of thousands of workers every month.
"I do not think the U.S. is currently in a recession," he recently told the media. "It doesn't make sense that the U.S. would be in recession."
"We're trying to do just the right amount. We're not trying to have a recession," he has also stated to the press.
But this could still change, and not necessarily in a positive way. Powell has also mentioned that they will hold another meeting in the foreseeable future, where they will be discussing the next move on this topic.
Powell says that the country could potentially see another federal rate spike by that time, depending on the information they receive within that time frame.
"While another unusually large increase could be appropriate at our next meeting, that is a decision that will depend on the data we get between now and then," Powell said. "We will continue to make our decisions meeting by meeting, and communicate our thinking as clearly as possible."
According to reports, another update on new data will be released this coming Friday, which will display the crucial numbers in the second quarter.
Powell said they would pay close attention to the nation's economy in the short future, and they take action on the matter depending on how the country's inflation responds within the new few months.
