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Powell Vows to Cool Prices With Hikes That Risk Economy Pain

  • Fed chief sets aggressive path, stops short of drastic action
  • Expresses confidence rate hikes won’t induce recession
Bloomberg business news
WATCH: Fed Chairman Jerome Powell speaks about the decision to raise its benchmark interest rate by a half percentage point.Source: Bloomberg
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Federal Reserve Chair Jerome Powell assured Americans that policy makers will do what it takes to curb surging inflation, acknowledging this could cause “some pain” as the U.S. central bank deployed its most powerful policy tightening in decades.

The Fed on Wednesday raised interest rates by 50 basis points for the first time since 2000 and Powell said similar moves were on the table for June and July. Still, investors took heart that he also pushed back against a larger 75 basis-point increase, with stocks enjoying their largest rally on the day of a Fed meeting in a decade.