Fed Chairman Powell points out that a 50 basis point rate hike is 'on the table' in May

Powell made evaluations at the panel held on the global economy as part of the International Monetary Fund (IMF)-World Bank Spring Meetings.

Stating that the US economy is a little further away from the effects of the Russia-Ukraine war compared to Europe, Powell noted that the effects of the war will be felt as an upward inflation pressure in the USA.

Pointing out that the US economy is very strong and performing very well, Powell said that the labor market is extraordinarily tight.

Emphasizing that they aim to reduce inflation without a recession, Powell stated that they will do their best to achieve this.

"It's ok to move a little faster"
"We are determined to use our tools to get back to 2 percent inflation," Powell said, noting that many at the Fed believe one or more 50 basis points hike would be appropriate. said.

Pointing out that inflation is already very high and monetary policy is still more supportive than before, Powell noted that it is appropriate to act a little faster.

"I would say 50 basis points will be on the table for the May meeting," Powell said. said.

Stating that inflation is a global problem, Powell explained that there are some differences between countries.

Powell noted that inflation may have peaked in March, but they would not rely on it, adding that they would increase interest rates, quickly become more neutral, and then, if appropriate, adopt a strict policy.

Pointing out that the events in Ukraine are likely to cause further disintegration in the political and economic position, Powell said that there may be a world of higher inflation, while globalization is slowing down.

Lagarde argued that inflation should be intervened gradually
European Central Bank (ECB) President Christine Lagarde also said that growth risks are on the downside at the same panel she attended.

Stating that the economic recovery of Europe has stalled to some extent, Lagarde noted that the Eurozone and US economies grew at different rates.

Lagarde pointed out that inflation is very high in the Euro Zone and stated that inflation should be intervened gradually.

Stating that the June meeting of the ECB is key to the course of interest rates, Lagarde said that data should be waited to decide what to do.

"For us, it's not a question of tightening, it's a question of normalizing monetary policy," Lagarde said. made its assessment.