Economics
Powell Affirms Fed on Track for March Hike, Will Move With Care
- Says pace of balance-sheet runoff to be set at March meeting
- Reaffirms his support for quarter-point rate rise this month
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Federal Reserve Chair Jerome Powell reaffirmed the U.S. central bank is on track to raise interest rates this month and commence a series of hikes to curb the highest inflation in decades, though Russia’s invasion of Ukraine means it will move “carefully.”
“I would be recommending and supporting a one quarter of 1% increase” at the March meeting, he told the Senate Banking Committee Thursday, reiterating comments made Wednesday during testimony to a House panel. “We are prepared to raise by more than that” at one or more meetings if inflation doesn’t come down, he added, noting that the central bank will also be shrinking its balance sheet this year.