In the Federal Reserve's press release, the necessity for further tightening of monetary policy was not explained. It merely noted that the "committee continues to monitor inflationary risks."
This was stated in the Federal Reserve's press release.
"The US banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks," the FRS statement said.
At a press conference, Federal Reserve Chair Jerome Powell stated that a decision on whether to pause the rate hike cycle would be made at the June meeting.
According to Powell, inflation in the US has slowed down compared to mid-last year, but price pressure remains high. The process of returning inflation to the target level of 2% is far from complete.
The FRS's inflation forecasts do not allow for the possibility of a rate cut in the coming months, he said.
He noted that the Federal Reserve was trying to assess whether the current rate level was sufficient to ensure the return of inflation to the target level. "At this point, it is not possible to say this with certainty," Powell concluded.
Background. Mind previously reported that US indices were falling amid issues with Credit Suisse bank.