US Fed Chair expects possible rate hike in September

US Federal Reserve Chair Jerome Powell 

The US Federal Reserve Chair Jerome Powell said the bank may raise interest rates again or keep them steady in September based on upcoming economic data.

He indicated that the bank was confident of taming inflation.

"It is certainly possible that we will raise interest rates again at the September meeting if the data warrants it," Powell said at the press conference following the Federal Open Market Committee meeting.

The (Federal Open Market) committee will continue to assess additional information and its implications for monetary policy, he added.

Powell stated that inflation has declined since the middle of last year; however, the process of bringing inflation back to 2% still has a long way to go.

"My base case is that we will be able to achieve inflation moving back down to our target without a really significant downturn that results in high levels of job losses," Powell added. 

During the two-day meeting, committee members decided to set the benchmark overnight interest rate higher between the 5.25%-5.50% range, reaching the highest level in 22 years.