Powell Indicates at Least Two More Rate Hikes Ahead After Pause
- Officials lift forecasts for rates, growth, core inflation
- Fed signals break from string of increases likely to be brief
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Federal Reserve officials paused their series of interest-rate hikes but projected borrowing costs will go higher than previously expected, owing to what Chair Jerome Powell called surprisingly persistent inflation and labor-market strength.
Powell, speaking to reporters in a press conference Wednesday, faced the challenging task of explaining two possibly contradictory policies: deciding to leave rates unchanged following 10 straight hikes while also indicating that at least two more increases might be necessary this year, with the first possibly as soon as July.