Powell’s Fed Set to Go Big and Keep Going Until Inflation Tamed
- Fed expected to raise rates by a half point in May and June
- Inflation could push Powell to signal restrictive policy ahead
This article is for subscribers only.
Jerome Powell doesn’t like to bless bets in financial markets, but he could shift the needle this week on how high investors expect the Federal Reserve to raise interest rates to cool overheated prices.
The Fed chair and his colleagues want to lift rates expeditiously to a neutral level this year that neither stimulates nor restrains growth -- around 2.5% -- and then slow the pace of tightening.