FED CHAIRMAN POWELL: NO NEED TO RAISE INTEREST RATES DESPITE RISING OIL PRICES

Fed Chairman Jerome Powell stated at Harvard University that inflation remains under control even with rising oil prices, so the Fed does not need to rush to raise interest rates. He emphasized that energy price shocks are only short-term and monetary policy should focus on the long-term goals of price stability and employment, rather than reacting to short-term fluctuations. The current interest rate level of around 3.5%–3.75% is considered appropriate for continued observation of the situation.

Powell also noted that raising interest rates now could negatively impact the economy in the future due to the time lag of monetary policy, and by the time the impact occurs, the oil price shock may have passed. Furthermore, while the private credit market is showing signs of adjustment with some risks and losses, the Fed currently sees no signs of this spreading into systemic risk.