© Reuters. FILE PHOTO: Federal Reserve Chairman Jerome Powell holds a news conference in Washington, U.S. May 3, 2023. REUTERS/Kevin Lamarque/
NEW YORK (Reuters) – Federal Reserve Chairman Jerome Powell said on Friday that the aftermath of recent banking sector turmoil is easing pressure on the U.S. central bank to raise rates.
Tighter credit conditions mean “our policy rate may not need to rise as much as it otherwise would have to to meet our targets,” Powell told a central bank conference. in Washington. He spoke as the end of the Fed’s rate hike cycle is in sight and markets and officials debate the need for further rate hikes to reduce inflation.