Fed Chair Jerome Powell says inflation has been higher than thought and expects rates to hold steady

Fed Chair Jerome Powell’s statement indicates that the Federal Reserve is facing the reality of a growing economy where inflation is higher than anticipated. This is often a result of numerous factors, including increased demand for goods and services, higher wages, and changing economic policies that can affect the cost of raw materials and manufacturing.

Powell’s expectation to hold steady rates indicates the central bank’s stance of not altering the interest rates, at least for the time being. This often happens when the economy is considered to be stable