Federal Reserve Chair Jerome Powell announced that the Fed will raise interest rates and maintain high borrowing costs until inflation reaches 2%.

Although inflation has decreased, it remains too high. Powell welcomed slower price growth in the US economy due to tighter monetary policy and looser supply limitations.

He warned that the process still has a long way to go.

The Fed may maintain stable rates at its September meeting, as investors expect.

Powell’s focus on restoring price stability and tightening further may continue throughout 2023.