Powell Says Fed Still Has a ‘Ways to Go’ After Half-Point Hike
- ‘Ongoing’ increases are seen as FOMC maintains language
- Officials cut 2023 GDP forecasts, raise unemployment
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Chair Jerome Powell said the Federal Reserve is not close to ending its anti-inflation campaign of interest-rate increases as officials signaled borrowing costs will head higher than investors expect next year.
“We still have some ways to go,” he told a press conference on Wednesday in Washington after the Federal Open Market Committee raised its benchmark rate by 50 basis points to a 4.25% to 4.5% target range. Policymakers projected rates would end next year at 5.1%, according to their median forecast, before being cut to 4.1% in 2024 — a higher level than previously indicated.