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Central Banks

Powell Signals Downshift Likely Next Month, More Hikes to Come

  • Peak rate to be ‘somewhat higher’ than thought in September
  • Reiterates borrowing costs to be restrictive for ‘some time’
Bloomberg business news
Powell: Fed Rate Hike Moderation May Come in December
Updated on

Chair Jerome Powell signaled the Federal Reserve will slow the pace of interest-rate increases next month, while stressing borrowing costs will need to keep rising and remain restrictive for some time to beat inflation.

His comments, in a speech Wednesday at the Brookings Institution in Washington, likely cement expectations for the Fed to raise interest rates by 50 basis points when they meet Dec. 13-14, following four straight 75 basis-point moves.