US Federal Reserve interim chairman Powell said on the 2nd that it would be "appropriate" for the fed to raise the target range of the federal funds rate at the March monetary policy meeting. He was inclined to propose and support a 25 basis point increase in interest rates. When attending the hearing of the House Financial Services Committee on the 2nd, Powell said that under the background of the continuous recovery of the US economy and high inflation, he was inclined to propose and support the Federal Reserve to raise interest rates by 25 basis points at the March monetary policy meeting. He also said that if inflation remained high, the Fed would "be prepared to take more radical action to raise the federal funds rate by more than 25 basis points at one or more meetings". Powell said that the US labor market remained "extremely tense". Despite the significant increase in employment, a significant decline in the unemployment rate, strong labor demand and an increase in labor participation rate in the United States over the past year, the labor supply is still depressed, enterprises are difficult to fill job vacancies, and wages are rising at the fastest rate in many years. Powell said that the US inflation level has risen sharply since last year due to the disruption of supply chain size and duration beyond expectations and the continued rebound of COVID-19 and exacerbating the supply chain crisis, which is now far more than the 2% long-term goal set by the Federal Reserve. High inflation has brought "great difficulties" to the lives of ordinary Americans, as well as resistance to the realization of a strong labor market and long-term economic expansion in the United States. Therefore, it would be "appropriate" for the fed to raise the target range of the federal funds rate at the monetary policy meeting in March. Powell said that the process of the US Federal Reserve phasing out the ultra loose monetary policy during the COVID-19 period will include raising the target range of the federal funds rate and reducing the size of the Federal Reserve's balance sheet. The Fed will start to shrink its balance sheet after starting the interest rate hike process. Asked about the impact of the sharp rise in global oil prices caused by Russia's military action against Ukraine on the process of U.S. economic recovery, Powell said that the short-term impact of the military action itself and relevant sanctions on the U.S. economy is "highly uncertain", and the Federal Reserve should recognize that the economy is developing in an "unexpected way", And respond flexibly to changing prospects. US President Biden nominated Powell for re-election as chairman of the Federal Reserve last November, but the Senate has not yet voted on his nomination. On February 4 this year, the Federal Reserve announced the appointment of Powell as interim chairman to wait for Senate approval. The Federal Reserve will hold a monetary policy meeting from March 15 to 16 to discuss the recent US economic situation and monetary policy adjustment. (Xinhua News Agency)