The more aggressive fight needed to quash surging price pressures will lead to a downturn as it cools demand across the economy, they added.

read moreД¬ritics contend that the Fed has been too slow to act to bring down inflation which it argued last year was transitory. Research released by the San Francisco Fed on Tuesday showed supply issues account for around half of the run-up in current inflation levels, underscoring the difficulties Fed policymakers face in taming inflation due to factors outside their control. lawmakers on Wednesday and Thursday during two days of regularly scheduled hearings, held semi-annually, before Congress.Д«arkin said he remains hopeful that a lot of pandemic era price pressures will ease and inflation start to ease in short order, but gave no timeframe for when it might return to the central bank's goal. Powell's pledge of an unconditional war against price increases that are draining American pocketbooks will be scrutinized by U.S. Several policymakers, including some previously more wary about sparking a sharp rise in unemployment, have backed the new whatever-it-takes approach. It now forecasts borrowing costs will more than double that level over the next six months. Last week on the heels of another report that showed price pressures escalating more than expected, the Fed raised interest rates by three-quarters of a percentage point to a range of 1.50%-1.75%. It is a fine balance and I think judgment plays a huge part,' Barkin said, noting that he is focused on trying to get to positive forward looking real, or inflation-adjusted, rates.

'You really don't want to inadvertently break something and lead to a significant pullback in the reactions of economic actors that you weren't anticipating. Barkin repeated that the Fed will have to make monetary policy restrictive, but said data and judgment would guide the central bank as its tackles 'high, broad based and persistent' inflation.

Federal reserve bank next meeting