Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
US State Department sanctions UN Special Rapporteur on the Occupied Palestinian Territories Francesca Albanese.
Yemeni Armed Forces: We reiterate our warning to companies dealing with ports in occupied Palestine that their vessels and crews will be targeted anywhere.
Yemeni Armed Forces: We reaffirm our commitment to preventing Israeli maritime activity in both the Red Sea and the Arabian Sea.
Yemeni Armed Forces: This naval military operation was carried out in support of the oppressed Palestinian people and in solidarity with their heroic resistance fighters.
Yemeni Armed Forces: The vessel was targeted after it ignored calls and warnings issued by the Yemeni naval forces.
Yemeni Armed Forces: We targeted the vessel ETERNITY C as it was heading to the occupied port of Umm al-Rashrash using a drone boat and six cruise missiles.
Israeli drones conduct an airstrike on Saboura and Yafour in the Damascus countryside, Syria.
Al-Qassam Brigades: We targeted an Israeli army D9 bulldozer with a Shawaaz explosive device in a resistance operation in the Ma'an area, south of Khan Younis, on June 24
Sources to Al Mayadeen: Syrian army and police forces will only be permitted to carry light weapons in the buffer zones
Sources to Al Mayadeen: All heavy weapons will be evacuated from Syrian army barracks in the south of the country

Powell admits Fed’s rate hike 'mistake', vows to be cautious on cuts

  • By Al Mayadeen English
  • Source: Agencies
  • 15 Jul 2024 23:40
3 Min Read

With the CPI now hovering around 3% per year, the Fed is under scrutiny for when it will decide to cut interest rates.

Listen
  • x
  • Federal Reserve Chair Jerome Powell participates in a conversation with Economic Club of Washington, DC, Monday, July 15, 2024, in Washington. (AP Photo/Manuel Balce Ceneta)
    Federal Reserve Chair Jerome Powell participates in a conversation with the Economic Club of Washington, DC, Monday, July 15, 2024, in Washington (AP Photo/Manuel Balce Ceneta)

Federal Reserve Chairman Jerome Powell on Monday acknowledged that the central bank erred by delaying interest rate hikes until inflation became a major issue, and he promises not to make the same mistake with future rate cuts.

At an event with the Washington Economic Club, Powell admitted, "We essentially overestimated how quickly the economy would return to normal."

He explained that the Fed initially viewed the post-pandemic price increases as "transitory" and believed that inflation would subside on its own without the need for immediate rate adjustments.

"You don't want to intervene with interest rates if something is going to go away quickly," he said. "You look through things like a temporary oil [price] shock, so that was the mistake — it [the inflation] actually didn't reverse itself."

When the Fed began to hike rates, it did so with little restraint, raising them 11 times between March 2022 and July 2023 to clamp down on prices.

Read more: Fed keeping close eye over gold prices: Fed official

For over a decade before the COVID-19 outbreak in March 2020, price growth remained below the Fed’s long-standing 2% annual target. However, the pandemic-induced temporary shutdown of the US economy, coupled with supply chain disruptions and trillions of dollars in government relief spending, drove inflation—measured by the Consumer Price Index (CPI)—to a four-decade high of 9.1% by June 2022.

Related News

Rubio sanctions UN’s Francesca Albanese over ICC push on 'Israel'

Borrell blasts 'war criminal' Netanyahu for Trump Nobel nomination

With the CPI now hovering around 3% per year, the Fed is under scrutiny for when it will decide to cut interest rates.

While Powell refrained from saying when he might consider rate cuts, he did explain to the Washington Economic Club that inflation has "long and variable lags" and why the Fed should avoid waiting too long to ease monetary policy.

"The implication of that is that if you wait until inflation gets all the way down to 2%, you’ve probably waited too long, because the tightening that you’re doing, or the level of tightness that you have, is still having effects which will probably drive inflation below 2%," Powell said.

He also noted that the Fed seeks "greater confidence" that inflation is sustainably moving toward its 2% target.

"What increases that confidence in that is more good inflation data, and lately here we have been getting some of that," Powell added.

Federal Reserve Chair Jerome Powell said second-quarter economic data has provided policymakers greater confidence that inflation is heading down to the central bank’s 2% goal, possibly paving the way for near-term interest-rate cuts https://t.co/TnstgcSYyX pic.twitter.com/QMAUqjC6vp

— Bloomberg TV (@BloombergTV) July 15, 2024

The Fed’s Federal Open Market Committee is scheduled to meet on July 30-31 to decide on interest rates, but money market traders are primarily anticipating that any easing will occur at the central bank’s September 17-18 meeting.

Read more: Delinquency rates on loans in US highest in 5 years, sparks concerns

  • United States
  • Federal reserve
  • US interest rate hikes
  • jerome powell

Most Read

Syria demands 1/3 of Golan, Lebanese areas for 'Israel' peace deal

Syria demands 1/3 of Golan, Lebanese areas for 'Israel' normalization

  • MENA
  • 4 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Al-Qassam hits IOF groupings in Khan Younis; ‘tough incident’ reported

3 Israeli soldiers killed by Resistance gunfire in south, north Gaza

  • Palestine
  • 4 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Yemen Navy sinks ETERNITY C ship, shares footage of operation
Politics

Yemen Navy sinks ETERNITY C ship, shares footage of operation

UN special rapporteur Francesca Albanese at a press conference during a session of the UN Human Rights Council, in Geneva, on March 27, 2024. (AFP)
Politics

Rubio sanctions UN’s Francesca Albanese over ICC push on 'Israel'

An Israeli captive is escorted by Hamas fighters before being handed over to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)
Politics

Hamas seeks full Israeli withdrawal, aid in Gaza truce talks

Tehran demands UN probe into Israeli use of mercenaries inside of Iran
Politics

Tehran demands UN probe into Israeli use of mercenaries inside of Iran

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS