Economics
Powell Backs Front-Loading Fed Rate Hikes, Says Half-Point on Table
- Chair states Fed commitment to getting inflation down to 2%
- Says ‘there’s something in the idea of front-end loading’
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Federal Reserve Chair Jerome Powell blessed a half-point interest-rate hike next month and signaled support for further aggressive tightening to curb inflation by noting that he saw merit in “front-end loading” policy moves.
“I would say that 50 basis points will be on the table for the May meeting,” Powell told an IMF-hosted panel on Thursday in Washington that he shared with European Central Bank President Christine Lagarde and other officials. “We really are committed to using our tools to get 2% inflation back,” he said, referring to the Fed’s target for annual price increases.