Skip to content
Central Banks

Powell Sees Rates Higher for Longer, But Market Doesn’t Buy It

  • Fed raises rates 50 basis point, projects more hikes to come
  • Growth seen near stall speed in 2023 as unemployment rises
Bloomberg business news
WATCH: Federal Reserve Chairman Jerome Powell speaks about the decision to raise its benchmark interest rate by half of a percentage point.Source: Bloomberg

Federal Reserve Chair Jerome Powell says the central bank has more work to do in raising interest rates and vanquishing inflation. Investors on Wall Street seem to see the outlook for 2023 differently. 

In a 45-minute press conference after the Fed hiked rates by 50 basis points to the highest level since 2007, Powell sought to dispel any notion that the central bank would back away from its fight to bring down inflation despite ebbing price pressures and mounting fears of job losses and a recession.