Federal Reserve (Fed) Chair Jerome Powell stated on Wednesday that the central bank is unanimously committed to bringing inflation down to its 2% target.

In his first press conference since taking office, Powell added that none of the central bank officials want to raise interest rates in the short term.

"We have the ability and the will to achieve 2% price stability, and indeed we will," Powell said.

He emphasized that members of the Federal Open Market Committee (FOMC) are "divided" on interest rate policy, but added that currently, members do not strongly favor either raising or lowering rates.

The Fed will hold its next meeting in six weeks, and by then, a clearer picture of the direction of the federal funds rate will emerge, he said.

Powell, responding to a question from The New York Times, added that the Federal Reserve has lost credibility over the past five years.

He reiterated that monetary policy can be used for both inducing inflation and inducing deflation.

"It is certain that interest rates can be used to induce inflation," Powell said. "We will correct that problem."

Powell stated that his top priority as Fed Chair is to "properly achieve monetary and price stability."

Powell further added, "Today, we made an important announcement regarding our commitment to achieving price stability."

As one way to achieve this, Powell cited a greater reliance on real-time data, similar to the private sector.

Powell is directing the Federal Reserve (Fed) to form several task forces to overhaul its existing approach, including a statistics task force to develop "new analytical methods using real-time price data without modification."

"What we are truly interested in is what is happening right now, not the [summary] that comes out on Friday after last month's employment report," Powell added. "That is merely an echo of the past."

He stated that the US labor market is currently very robust, and artificial intelligence is expected to further stimulate the economy.

Powell, who frequently uses the nickname "American Ingenuity" for artificial intelligence, added that the U.S. will emerge as a clear winner in the AI race.

Regarding whether to prioritize jobs over inflation or vice versa, the Fed Chair said, "We do not believe we are in a situation where we have to make cruel choices."

Powell has set a goal to reform the U.S. central bank by the end of the year to create "a Federal Reserve that is clearly aware of its mission, priorities, and objectives, and can make more informed decisions."

The new head of the U.S. central bank also emphasized that he is considering reforming the way the Fed communicates with financial markets, as well as U.S. households and businesses.

One of his first actions was to discontinue the practice of including hints about future interest rate direction in Fed statements, so-called "forward guidance."

Powell said he wants Wall Street to react to the latest reports on inflation, the labor market, and other economic indicators based on how those indicators will affect the prices of stocks, bonds, and other investment products, rather than on what traders expect the Federal Reserve (Fed) to do in response.

In this regard, Powell indicated that the Fed may revise its existing forecasts for interest rates, the economy, and inflation, which are published quarterly.

For now, Wall Street reacted nervously to the latest forecasts from Fed officials, and the Dow Jones Industrial Average closed down 507 points after Powell's speech.

When asked if the Fed has plans to cut interest rates, Powell told reporters, "No."

Powell stated that he will continue to meet weekly with Treasury Secretary Janet Yellen and will take a "broad view, narrow authority" approach to a wide range of issues.

Powell said Fed officials generally see the U.S. labor market as stable.

In bond markets, Treasury yields rose. The 10-year Treasury yield, which affects mortgage and other loan rates for U.S. households and businesses, rose to 4.49% from 4.43% late Tuesday.

The 2-year Treasury yield, which more closely reflects expectations about the Fed's policy moves, jumped to 4.21% from 4.05%.

According to data from CME Group, traders have strengthened their expectations that the federal funds rate will be raised at least once this year, with the probability now revised upward to 84% from 59.5% the previous day.

Mainstream media reports indicate that rising interest rates in global bond markets due to inflation concerns are increasing the risk of slowing economic growth and declining prices for all types of investment assets.

By Hong Sung-gu, Chief Reporter / Special Correspondent for this newspaper, NNP info@newsandpost.com