Federal Reserve chair Jerome Powell warned on Tuesday that interest rates may need to remain elevated for a longer period of time due to the ongoing battle against inflation. Powell stated that there has been little progress in bringing down price growth this year, indicating that monetary policy may need to stay in place to combat inflation.
During a panel discussion, Powell acknowledged the solid growth and strength in the labor market but expressed concern over the lack of progress in reaching the 2% inflation goal. He emphasized that recent data have not provided greater confidence and suggested that it may take longer than expected to achieve the desired level of inflation.
Powell’s comments come amidst a challenging economic environment, with uncertainty surrounding inflation and the potential need for continued restrictive monetary policy. The Federal Reserve is closely monitoring the situation and is prepared to address any risks that may arise.
In related news, Trump Media shares experienced a significant decline in midday trading, following the announcement of the launch of the Truth Social platform. Former President Donald Trump, the majority shareholder of Trump Media, is currently involved in a legal case in New York.
Meanwhile, stocks such as UnitedHealth, Johnson & Johnson, and SolarEdge Technologies made headlines in midday trading, with each company experiencing notable movements in their stock prices.
Overall, the economic landscape remains uncertain, with various factors influencing market dynamics and policy decisions. Investors and analysts are closely monitoring developments to navigate the evolving financial environment.
