Powell says Fed will hike interest rate further and faster if necessary

Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee hearing, on March 3, 2022 on Capitol Hill in Washington. Powell said Monday that the Federal Reserve would raise its benchmark short-term interest rate faster than expected, and high enough to restrain growth and hiring, if it decides this would be necessary to slow rampaging inflation.

He added, too, that the policymakers could go so far as to send rates into “restrictive” territory that would slow economic growth and possibly raise the unemployment rate, if needed to tame high inflation. Powell cautioned Monday that those projections of future interest rates and inflation “can become outdated quickly at times like these, when events are developing rapidly.”

[Most read] By trading Marc-André Fleury at the deadline, the Chicago Blackhawks add a 3rd potential 1st-round pickSome economists argue that such a painless outcome — what they refer to as a “soft landing” — is unrealistic, given the challenges the economy faces, including the potential for deeper economic disruptions resulting from Russia’s invasion of Ukraine. The war has already raised the cost of oil, wheat, nickel and other vital commodities.

He suggested that higher rates from the Fed could slow consumer spending enough to reduce that outsize demand for workers, which would, in turn, reduce wage growth to a level that wouldn’t boost inflation. Bostic also said he expects the Fed to raise rates a total of six times this year, and twice more in 2023. That is a more dovish approach than most of his colleagues. But he emphasized that this was mostly because of the extreme uncertainty currently surrounding the economy. If more rate hikes were necessary to slow inflation, he would support them, he said.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed will raise interest rates more aggressively if needed, Powell saysThe U.S. central bank must move 'expeditiously' to bring too-high inflation to heel, Federal Reserve Chair Jerome Powell said on Monday, adding that it could use bigger-than-usual interest rate hikes if needed to do so. He can talk all he wants but would not dare to walk the walk, just look at the 2yr yield and the yield curve, signs for coming recession are starting to poke their heads up😊
Source: Reuters - 🏆 2. / 97 Read more »

Powell says Fed could raise interest rates faster to combat red-hot inflationFederal Reserve Chairman Jerome Powell said Monday the central bank is prepared to more aggressively raise interest rates if policymakers conclude that doing so is warranted to curb inflation.
Source: FoxNews - 🏆 9. / 87 Read more »