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Powell Sees Higher Peak for Rates, Path to Slow Tempo of Hikes

  • ‘Ongoing increases’ until rates ‘sufficiently restrictive’
  • Fed to take cumulative tightening, policy lags into account
Bloomberg business news
Powell: Fed Could Slow Hikes by Next MeetingSource: Bloomberg
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Federal Reserve Chair Jerome Powell opened a new phase in his campaign to regain control of inflation, saying US interest rates will go higher than earlier projected, but the path may soon involve smaller hikes.

Addressing reporters Wednesday after the Fed raised rates by 75 basis points for the fourth time in a row, Powell said “incoming data since our last meeting suggests that ultimate level of interest rates will be higher than previously expected.”