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June 17 (UPI) -- Federal Reserve Chairman Jerome Powell said Friday that the central bank is "acutely focused" on bringing down inflation. "The Federal Reserve's strong commitment to our price stability mandate contributes to the widespread confidence in the dollar as a store of value," Powell said during a conference on the international roles of the U.S. dollar in Washington, D.C.
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"To that end, my colleagues and I are acutely focused on returning inflation to our 2% objective."
The remarks are Powell's first public comments since the Federal Open Market Committee on Wednesday raised the target interest rate by three-quarters of a percentage point for the first time since 1994. The move sent stocks tumbling, after an initial rally, amid concerns of a recession.
Inflation has reached 40-year highs, with the Consumer Price Index rising to an annual rate of 8.6% in May.
Powell said the Fed's commitment to financial stability and its dual mandate of managing inflation and minimizing unemployment encourage international communities to hold and use the U.S. dollar for payments and investments.
He noted that the dollar's international role benefits U.S. households, businesses and government with lower transaction fees and borrowing costs and increases global access to a broad pool of lenders and investors.
He highlighted the role of liquidity facilities in promoting financial stability during global financial turmoil such as the COVID-19 pandemic.
"Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future," Powell said.
"Most major economies already have or are in the process of developing instant, 24/7 payments. Our own FedNew service will be coming online in 2023.
"And in light of the tremendous growth in crypto assets and stable coins, the Federal Reserve is examining whether a U.S. central bank digital currency would improve on an already safe and efficient domestic payments system."
