Fed interest rate decision: Cooling inflation likely not enough

in its March statement that"some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time."at March's press conference that he's willing to bring some pain to Americans via continued interest rate increases if it means staying on the fight to get inflation down..

Powell's methods continue to draw criticism from some of his harshest critics, like Massachusetts Sen. Elizabeth Warren. Following the March interest rate hike, Warren"I've warned for months that the Fed's current path risks throwing millions of Americans out of work," she said."We have many tools to fight inflation without pushing the economy off a cliff."

Still, a potential pause on rate increases could be on the horizon as soon as June, especially as the fallout from the failure of SVB and other regional banks does some of the Fed's work for it by slowing the pace of lending in the broader economy. Former Treasury Secretary Larry Summers recentlyIntelligencer that given the"credit crunch coming from the banking side that's doing some of the work of interest-rate increases, it's possible that we'll have had enough after May.

"I do think there's a path to bring down inflation while maintaining what I think all of us would regard is a strong labor market," Yellen said."And the evidence that I'm seeing suggests we are on that path."Subscribe to push notifications

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