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
Al Mayadeen's correspondent: The Lebanese Army is continuing its investigations and will later announce any information that does not affect the confidentiality of the investigation
Al Mayadeen's correspondent: It has not yet been determined whether the detainees belong to ISIS or another organization
Al Mayadeen's correspondent: Around 10 people of different nationalities, including Lebanese nationals, were detained
Al Mayadeen's correspondent: The Lebanese army arrested a number of people in the Matn area of Mount Lebanon with possession it has not disclosed
Gaza Civil Defense spokesman: We have strong indications that there are martyrs, injuries, and trapped people in the Salah al-Din area
Gaza Civil Defense spokesman: Citizens should avoid Salah al-Din Street because anyone who approaches it is at risk of being directly targeted
Gaza Civil Defense spokesman: Reality is that there is a very limited retreat of the vehicles, with the occupation forces providing cover undeer fire up to Salah al-Din Street
Gaza Civil Defense spokesman: Claims that the Israeli occupation has withdrawn from areas in the neighborhoods of al-Zaytoun, al-Tuffah, and al-Shujaiya are false
Hamas: The two delegations stressed that any negotiations must lead to the achievement of our people's goals and aspirations, foremost among which is ending the war and the complete withdrawal of enemy forces
Hamas: A delegation from the Hamas leadership, led by the head of the leadership council, Mohammad Darwish, met with an Islamic Jihad delegation, headed by its Secretary-General, Ziyad al-Nakhalah

Interest rates need to stay high to mitigate inflation: NY Fed Chief

  • By Al Mayadeen English
  • Source: Agencies
  • 9 Feb 2023 00:38
3 Min Read

Chairman Jerome Powell said that the Fed wanted to give disinflation, which has just begun, a chance to work, instead of just resorting to higher interest rates.

  • x
  • US Fed Chair Jerome Powell
    US Fed Chair Jerome Powell

Federal Reserve Bank for New York President John Williams, expressed interest in a high-interest rate policy in an effort to contain inflation. 

"To me, the important thing is we need a sufficiently restrictive stance, we need to retain a sufficiently restrictive stance of policy, we’re going to need to maintain that for a few years to make sure we get inflation to 2%, then eventually we’ll get interest rates presumably back to more normal levels," Williams said.

After the COVID-19 outbreak in March 2020, the Fed raised interest rates by 450 basis points, reaching a high of 4.75% from 0.25%.

The US labor market is the focal point of this policy. The fed identified the corrective inclinations of the market to counteract the covid recession as the primary drive for inflation. After the break out of the pandemic and the consequent precautionary measures taken by the state to mitigate the contagion, approximately 20 million workers were rendered unemployed. Starting in June 2020, hundreds of thousands of jobs were being steadily added without fail to accommodate for the covid-triggered unemployment. 

Related News

Russia rejects Israeli pressure regarding Iran nuclear file: Exclusive

US, Israeli bases in W. Asia within Iranian fire range: Military spox

Read more: US Federal Reserve to raise interest rates, recession fears heighten

The Fed has established the growing number of jobs and the heftiness of wages as the primary drive for inflation. Subsequently, interest rates were being set in accordance with the job data of the NFP (non-farm payrolls) reports issued by the US Labor Department. 

The market's inclinations at calibrating supply and demand proved to have detrimental effects on the US economy. The Fed aims to employ high-interest rates to stifle investments and contain the increasing surge in job opportunities. 

Chairman Jerome Powell said that the Fed wanted to give disinflation, which has just begun, a chance to work, instead of just resorting to higher interest rates. "If strong labor market reports or higher inflation reports continue, the Fed may need to raise rates more than is currently priced in," Powell said on Tuesday. "Disinflation has begun but it has a long way to go. This process is likely to take quite a bit of time, it's likely to be bumpy, not smooth."

The Consumer Price Index (inflation gauge) increased at a pace of 6.5% annually, this was three times more than the Fed's target (2% per year). Powell even predicted that the Fed might not achieve its long-held goal of 2% inflation until late 2024. 

  • US
  • inflation

Most Read

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
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The Freedom Flotilla ship Handala as it departs for Gaza, where it aims to break the maritime blockade at a port in Syracuse, Sicily in southern Italy on July 13, 2025. (AFP)
Palestine

Freedom Flotilla's Handala departs Sicily in bid to break Gaza siege

The container ship CMA CGM Laperouse, left, docks at the Georgia Ports Authority's Port of Savannah, Sept. 29, 2021, in Savannah, Ga (AP)
Politics

US shipbuilding woes deepen as tariffs, outdated policies backfire

Gaza war raises ethical questions for ex-Obama, Biden officials
Politics

Mercenary firm tied to Gaza war crimes hires Obama-Biden PR operatives

'Israel' targets children in Gaza collecting water
Palestine

'Israel' strikes Gaza kids fetching water, blames it on 'malfunction'

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