Powell advocates raising the base rate twice more in 2023

Chairman of the Federal Reserve System Jerome Powell considers it appropriate to raise the base interest rate twice more in 2023. 

During his speech before the Senate Banking Committee with a semi-annual report on monetary policy, Powell said that the Fed will learn the right lessons from the collapse of Silicon Valley Bank, which went bankrupt in March this year. He also noted that the Fed will strengthen supervision of medium-sized banks.

Powell stressed that achieving inflation at 2%, the Fed's target value, will take considerable time. However, reducing inflation to this level is important to ensure the long-term sustainability of the country's economy.

«We are striving to control inflation, and the vast majority of Fed members believe that we are approaching this goal, but we need to raise the rate a little more,» the head of the Federal Reserve System said.

Powell also noted that it takes some time for the tightening of monetary policy to have an impact on the US economy. Therefore, at the June meeting of the Fed, it was decided to keep the base rate in the range of 5-5.25% per annum.