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Fed Chairman Powell pledges “Central Bank Will use Our Tools Forcefully”

Powell’s remarks added that higher interest rates, likely will persist “for some time. He states that 

The historical record cautions strongly against prematurely loosening policy.”

The Federal Reserve Chairman delivered a commitment to do anything necessary to halt inflation,

Using every means available in its arsenal, including some of the most painful, continuing to raise

Interest rates in a way that will cause “some pain” to the US economy said Powell.

Inflation in the United States has been running at its highest for the last 40 years.

Despite four consecutive interest rate increases adding up to a 2.25 percentage points, 

there is no place to stop or pause Says Powell.

Powell made it clear, that these extreme measures will bring pain to the American people,

But failure to restore price stability 

“We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%,” 

Powell said. The Chairman also stated “restoring price stability will likely require maintaining a restrictive policy stance

 for some time. The historical record cautions strongly against prematurely loosening policy.”

The Fed Chair says that at this time, fighting inflation is more important than supporting growth.

“Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy,” said Powell.

 “Without price stability, the economy does not work for anyone.”

These forecasted interest rate hikes will without a doubt affect real estate mortgages nationwide,

And risk to slow the market down, however, the South Florida luxury real estate market remains strong to this day.