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Powell Signals More Hikes Coming, While Markets Detect Pivot

  • Economists hear hawkish message and see 50-50 recession odds
  • Fed chief says pace of tightening to slow at some point
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Powell: Another Unusually Large Hike Depends on Data
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Chair Jerome Powell said the Federal Reserve will press on with the steepest tightening of monetary policy in a generation to curb surging inflation, while handing officials more flexibility on coming moves amid signs of a broadening economic slowdown. 

Policy makers again raised the benchmark US interest rate 75 basis points on Wednesday to a range of 2.25% to 2.5% and said they anticipate “ongoing increases” will be appropriate.