“I will raise interest rates until inflation is controlled”… Request for exemption from fuel tax

Federal Reserve Chairman Powell has made it clear once again that he intends to keep raising interest rates until inflation is caught. President Biden has asked Congress to pass a bill that would waive the fuel tax for 90 days to keep gas prices under control.

Correspondent Kim Jong-won from New York.

Jerome Powell, chairman of the Federal Reserve, the central bank of the United States, said it was working hard to keep inflation under control.

Chairman Powell said that inflation, the highest level in 40 years, must be lowered to the Fed’s target of 2%.

He also declared that prices would be caught in a few months.

[제롬 파월/미 연방준비제도 의장 : 앞으로 몇 달 안에 인플레이션이 2%대로 가라앉고 있다는 증거를 보게 될 겁니다. 그때까지 금리를 계속 인상하는 게 적절하다고 보고 있습니다.]

Chairman Powell said there was a chance of a recession, but he wouldn’t let it happen.

Meanwhile, President Biden has asked Congress to pass a bill that would waive the fuel tax for 90 days to help combat skyrocketing oil prices.

[조 바이든/미국 대통령 : 유류세 면제만으로는 지금의 문제를 고치지 못한다는 것에 충분히 동의합니다. 하지만 유류세가 면제되면 많은 가정이 그 즉시 안도감을 느낄 것이고 여유가 생길 겁니다.]

In addition, he urged each state to also exempt state fuel taxes. The White House explains that if both federal and state fuel taxes are exempted, gasoline prices will be reduced by 3.6%.

However, there are many economists who question the effectiveness of the fuel tax exemption, and there are opposing opinions not only among the opposition parties but also among lawmakers from the ruling party.

The New York Stock Exchange today (23rd) fell slightly on the remarks of Chairman Powell.