Rate Hike: US Fed Chairman consoles, hints at easing rate hike during next meeting

US Federal Reserve Chairman Jerome Powell comforted on Wednesday that interest rate hikes could be eased at the next monetary policy meeting. Powell said during a Hutchins Center on Fiscal and Monetary Policy event at the Brookings Institution that the December meeting could consider slowing the pace of rate hikes.

The next Federal Open Market Committee meeting is scheduled for December 14 and 15, 2022, the US Central Bank has informed on its website. Monetary policy affects the economy and inflation with uncertain lag, Powell said, and the full effects of monetary policy tightening have yet to be felt. Powell, without giving any indication of a rate change, said, "It makes sense to reduce the pace of growth now that we have reached a level of moderation that will be enough to bring inflation down."

However, the Fed chairman also said that history testifies against prematurely loosening policy. In such a situation, this exercise should continue till the goal of controlling inflation is achieved. The minutes of the US Federal Reserve's latest monetary policy review meeting showed that a large group of members favored slowing the pace of policy rate hikes.

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