http://syn2.thecanadianpress.com:8080/mrss/feed/fcf7391a2f354311807f0501c16bde6a MSN - AP World Copyright © 2010-2018 The Canadian Press. All rights reserved. http://www.rssboard.org/rss-specification Thu, 03 Jul 2025 02:30:03 +0000 http://syn2.thecanadianpress.com:8080/mrss/feed/fcf7391a2f354311807f0501c16bde6a/3823868603d046c4a6869c4679961571 Federal Reserve Chair underscores the Fed's determination to raise interest rates high enough to slow inflation, a commitment that has fanned concerns that the central bank's fight against surging prices could tip the economy into recession. (June 22) 3823868603d046c4a6869c4679961571 Wed, 22 Jun 2022 16:33:39 +0000 SHOTLIST:RESTRICTION SUMMARY:SENATE BANKING, HOUSING AND URBAN AFFAIRS COMMITTEEWashington DC - 22 June 20221. Cutaway of Senate Banking, Housing, and Urban Affairs hearing2. SOUNDBITE (English) Jerome Powell, Federal Reserve Chair:"We understand the hardship that high inflation is causing. We are strongly committed to bringing inflation back down, and we're moving expeditiously to do so. We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all."++SEPARATED BY WHITE FLASH++3. SOUNDBITE (English) Jerome Powell, Federal Reserve Chair:"In May, we announced plans for reducing the size of our balance sheet and shortly thereafter began the process of significantly reducing our securities holdings. Financial conditions have been tightening since last fall and have now tightened significantly, reflecting both policy actions that we have already taken as well as anticipated actions. Over coming months, we'll be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2%. We anticipate that ongoing rate increases will be appropriate. The pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy. We will make our decisions meeting by meeting and will continue to communicate our thinking as clearly as possible."++SEPARATED BY WHITE FLASH++4. SOUNDBITE (English) Jerome Powell, Federal Reserve Chair:"Our overarching focus is using our tools to bring inflation back down to our 2% goal and to keep longer term inflation expectations well anchored. Making appropriate monetary policy in this uncertain environment requires a recognition that the economy often involves in unexpected ways. Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We therefore will need to be nimble in responding to incoming data and the evolving outlook, and we will strive to avoid adding uncertainty in what is already an extraordinarily challenging and uncertain time. We are highly attentive to inflation risks and determined to take the measures necessary to restore price stability. The American economy is very strong and well positioned to handle tighter monetary policy."STORYLINE:Federal Reserve Chair Jerome Powell on Wednesday underscored the Fed's determination to raise interest rates high enough to slow inflation, a commitment that has fanned concerns that the central bank's fight against surging prices could tip the economy into recession. Powell said the pace of future rate hikes will depend on whether - and how quickly - inflation starts to decline, something the Fed will assess on a “meeting by meeting” basis. Its decision-making will be based on “the incoming data and the evolving outlook for the economy,” Powell said in prepared testimony to the Senate Banking Committee, which he is addressing as part of the Fed's semiannual policy report to Congress. Powell's testimony comes a week after the Fed raised its benchmark interest rate by three quarters of a percentage point, its biggest hike in nearly three decades, to a range of 1.5% to 1.75%. With inflation worsening, the Fed's policymakers also forecast a more accelerated pace of rate hikes this year and next than they had predicted three months ago, with its key rate reaching 3.8% by the end of 2023. That would be its highest level in 15 years. Concerns are growing that with inflation at a four-decade high, the Fed will end up tightening credit so much as to cause a recession. This week, Goldman Sachs estimated the likelihood of a recession at 30% over the next year and at 48% over the next two years.The Fed’s aggressive pace of rate hikes has intensified fear that it will overly stifle business and consumer borrowing. But in projections they issued last week, Fed officials forecast that while the economy will slow sharply this year and next, it will continue to grow. They also projected, though, that the unemployment rate will rise a half-percentage point by 2024, an increase that economists say could lead to a recession. Powell reiterated his view Wednesday that the U.S. economy “is very strong and well-positioned” to withstand higher rates. Yet with inflation causing hardships for millions of American households, he has stressed that moderating price spikes by raising rates is the Fed’s top priority. On Wednesday, the Fed chair said the central bank’s policymakers “will be looking for compelling evidence that inflation is moving down” over the coming months before they would ease their pace of rate hikes. In a policy report to Congress it submitted late last week, the Fed said its commitment to fighting inflation is “unconditional.” For now, most analysts expect a second three-quarter-point rate hike late next month and at least a half-point rate increase when the Fed meets again in September. Even as borrowing costs mount and economic growth slows, inflation is expected to remain far above the Fed’s 2% annual target by the end of this year.===========================================================Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: info@aparchive.com(ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. Federal Reserve Chair underscores the Fed's determination to raise interest rates high enough to slow inflation, a commitment that has fanned concerns that the central bank's fight against surging prices could tip the economy into recession. (June 22) Powell: Fed decide on rate hikes meeting by meeting