Fed’s Powell says inflation battle not won, more rate hikes coming - BusinessWorld Online

WASHINGTON — The Federal Reserve will deliver more interest rate hikes next year even as the economy slips towards a possible recession, Fed Chair Jerome Powell said on Wednesday, arguing that a higher cost would be paid if the US central bank does not get a firmer grip on inflation.

He described the slow rate of economic growth penciled in by Fed officials next year as still “modest.” If anything, the bias is higher: seven of 19 policymakers projected even higher rates will be needed, and US central bankers are unanimous that the risks are tilted towards higher-than-expected inflation rather than a surprise in the other direction.

Only two of 19 Fed officials see the benchmark overnight interest rate staying below 5% next year, a sign of a still broad consensus to lean against inflation.

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