Powell says Fed could raise interest rates faster to combat red-hot inflation

"We will take the necessary steps to ensure a return to price stability," Powell said in remarks prepared for delivery at an economics conference in Washington, D.C.The Fed voted last week to raise its benchmark federal funds rate by 25-basis points to a range between 0.25% and 0.5%. Officials projected at least six more, similarly sized increases over the course of this year.

"If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so," Powell said. "And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well."

Some economists believe the Fed waited too long to confront the burst in inflation, while others have expressed concerns that moving too quickly to stabilize prices risks triggering an economic recession. Hiking interest rates tends to create higher rates on consumers and business loans, which slows the economy by forcing employers to cut back on spending.

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