Federal Reserve Chair Jerome Powell sent risk markets spinning lower, and bond yields higher after he said that the US central bank was not confident that the current monetary policy was restrictive enough to bring inflation down to target (2%).
‘If it becomes appropriate to tighten policy further, we will not hesitate to do so,’ Powell said, before adding that the Fed ‘will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data, and the risk of overtightening.’
