Fed Remains Alert To Counter Accelerating Inflation

The US Federal Reserve will use all the available and necessary tools to support the American economy and to help the labour market to grow stronger.

Fed is determined to prevent higher inflation from becoming entrenched according to the prepared remarks from Jerome Powell confirmation hearing before the Senate Banking Committee.

The reappointed Fed Chair also signaled a high inflation toll and acknowledged that the post-pandemic economy will likely be different. The Fed announced at its December 2021 meeting it would end its pandemic-era bond purchases in March, paving the way at least for three interest rate hikes by the end of 2022.

But FOMC minutes released later showed a more hawkish Fed, and the central bank signaled it may become warranted to increase the federal funds rate sooner or at a faster pace than previously anticipated.

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on 5 February, 2018, for a four-year term. Powell also serves as Chairman of the Federal Open Market Committee, the System’s principal monetary policymaking body.

He has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.