Fed Opts for Hike-and-See in Gamble That Crisis Will Stay Contained
- Powell rejects idea of rate cuts but bond market doubles down
- Fed says banking woes will produce some credit tightening
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Less than two weeks after the second-biggest bank failure in US history, Federal Reserve Chair Jerome Powell made clear that inflation remains policymakers’ top concern.
The Fed chief advised that more Fed tightening may be in store after Wednesday’s interest-rate hike, and that the central bank will raise rates higher than expected if needed. In a press briefing, he also said officials don’t expect to be cutting rates this year — even as the bond market showed traders doubling down on that outcome.