Fed ready to raise interest rates to tackle inflation

ANKARA

If the inflation rate remains at high levels, the US Federal Reserve will further raise the interest rates, the bank's chair said on Tuesday.

"If we see inflation persisting at high levels, longer than expected, if we have to raise interest rates more over time, then we will," Jerome Powell told the Senate Banking Committee.

“We will use our tools to get inflation back,” he said.

Powell added that a long expansion is needed to get a very strong labor market Fed wants with high participation.

“To get a long expansion we are going to need price stability. And so in a way, high inflation is a severe threat to the achievement of maximum employment," he noted.