In its attempt to combat rising prices, the Fed raised its benchmark interest rate by 75 basis points for the first time since 1994, leaving it in a range between 1.5% and 1.75%.
“Clearly, today’s 75 basis point increase “is rare and significant. In this perspective, an increase of 50 basis points or 75 basis points seems very likely at our next meeting” in July, Powell said.
The president of the Fed said that they will work to return inflation to the 2% target and ruled out that the country is heading towards an economic recession.
“We see a slowdown, but there is still healthy growth,” he said.
“We are very aware of the dangers. But I would say that the worst mistake we could make would be to fail (to control inflation), which is not an option,” Powell said Wednesday.