Central Banks
Fed Watchers Put ‘Finger in the Air’ and See Rate Peak Above 5%
- Powell flagged higher rates but officials aren’t being precise
- Chair also suggested several ways inflation can be viewed
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Federal Reserve Chair Jerome Powell’s declaration that peak interest rates will need to go higher than previously thought has Wall Street making its best guess on that final level.
The Federal Open Market Committee in September estimated reaching a target range of 4.5% to 4.75% in 2023. But Powell, citing high inflation and a very tight labor market, told reporters Wednesday that “incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.”