[New York = E-Daily Correspondent Kim Jong-nam] Federal Reserve Chairman Jerome Powell said on the 16th that “quantitative austerity could begin as early as May.”
Speaking at a press conference following the Feds two-day regular meeting of the Federal Open Market Committee, Chairman Powell said: This means that QT will start from the next regular FOMC meeting scheduled for May 3rd and 4th. The balance sheet shrinking is a key tool for tightening along with the base rate hike.
He also said, “If more aggressive monetary tightening is needed in the future, the rate can be increased.” It is read to mean that monetary policy will be flexibly taken in accordance with changing circumstances.
Chairman Powell said, “I dont see a particularly high chance of a recession in the next year,” he said.
Regarding the possibility that steep austerity measures could lead to higher unemployment, he said, “we are focused on lowering inflation to achieve price stability.”
Federal Reserve Chairman Jerome Powell speaks during a press conference following the March Federal Open Market Committees regular meeting held on the 15th and 16th of March.