Fed chair says more data needed to prove inflation falling

By Ovunc Kutlu

ISTANBUL (AA) - US Federal Reserve Chair Jerome Powell said Wednesday that more macroeconomic data is needed to prove inflation is falling.

"It will take substantially more evidence to give confidence that inflation is on a sustained downward path," said Powell, adding price pressures "remain evident."

Powell spoke at a news conference after the central bank's two-day meeting following a rate increase of 50 basis points, carrying the federal funds rate to between 4.25% and 4.5% -- its highest in 15 years.

"Russia's war against Ukraine has boosted prices for energy and food, and has contributed to upper pressure on inflation," he said. "The longer the current bout of high inflation continues, the greater the chance that expectations of higher inflation will become entrenched."

Powell stressed that restoring price stability is essential to achieve maximum employment and stable prices in the long-run.

He warned that historical record cautions against prematurely loosening monetary policy, and added: "We will stay on the course (of lowering inflation) until the job is done."