Jerome Powell, Chairman of the Federal Reserve, reiterated that central bank is determined to lower inflation and stated Thursday that rate increases are feasible as early as next month.

Powell stated that it was appropriate to move a bit faster to raise interest rates while he was part of an International Monetary Fund Panel. There is also something to be said about front loading accommodation that one considers appropriate. … 50 basis points are expected to be discussed at the May meeting, according to me.

The market expects Powell to announce that the Fed will not increase its normal 25 basis points and take a more rapid course of action to control inflation. Inflation is now running at an all-time high. A basis point is equal to 0.01 percentage.

The Fed approved a move of 25 basis points at its March meeting. However, Fed officials have stated that they need to act faster as consumer inflation is running at 8.5% annually.

Powell stated that the goal was to make inflation fall and not cause a recession by using our tools. It’s unlikely that anyone from Fed will tell you that this is going to be easy or simple. It is going to be difficult. It’s going to be very difficult. We will do everything we can to make it happen.”

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