Central Banks

Powell Defies Critics and Makes Case for Why Rates Must Rise

  • Fed chair gives first day of semi-annual testimony to Congress
  • Process of getting inflation down to 2% has a ‘long way’ to go
Jerome Powell, chairman of the US Federal Reserve, during a House Financial Services Committee hearing in Washington.Photographer: Nathan Howard/Bloomberg
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Jerome Powell would like to make one thing clear: the Federal Reserve is not done hiking interest rates.

Seeking to clear up confusion about policy and play down the significance of last week’s break in its 15-month credit tightening campaign, the Fed chair suggested officials were on course for two more rate increases this year.