Fed Chairman Jerome Powell said on Tuesday that strong jobs data released last week simply confirmed that the central bank has some way to continue raising interest rates.
Investor sentiment improved when Mr. Powell mentioned deflation, raising hopes that the US central bank might continue to slow down the pace of interest rate hikes in the fight against inflation.
“The process of deflation, that is, lowering inflation, has already begun in the commodity sector. But the process still has a long way to go. This is just the beginning of deflation,” Mr. Powell said at noon on February 7.