Fed Chairman Jerome Powell hinted again on Wednesday, insisting that “almost all” Fed officials expect they will have to raise rates again before the end of the year, AFP reported.

“Almost all” Fed officials — governors and regional branch chairs — “expect that between now and the end of the year, another rate hike will be appropriate to some degree,” Jerome Powell told members of the House of Representatives during his semiannual meeting . committee hearing.

On June 14, the Fed suspended rate hikes for the first time since March 2022 after 10 hikes of 5 percentage points each. Rates are now in the range of 5-5.25%.

“At last week’s meeting, given where we are and the speed at which we are moving, we thought it prudent” to keep rates at current levels to “allow” Fed officials to “assess the information and its implications for monetary policy,” – said Jerome. Powell noted.

These rate hikes, which encourage commercial banks to offer higher lending rates to households and businesses, are aimed at slowing economic activity to reduce price pressures and slow inflation.

Inflation remains “well above our long-term objective of 2%,” the Fed president said.

Thus, “to determine” how much further monetary policy tightening will be needed to achieve this goal, “we will consider the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial events.” he added.

But “reducing inflation will likely require a period of below-trend growth,” warned Jerome Powell.

The next Fed meeting will be held on July 25 and 26.

On June 14, after announcing the decision of the Monetary Policy Committee, Jerome Powell already said that most Fed officials expect further interest rate hikes. However, he spoke of “moderate pace”.