Central Banks
Fed Signals Higher-for-Longer Rates With Hikes Almost Finished
- Powell stresses ‘careful’ approach in Wednesday press briefing
- Officials now see less easing next year than they anticipated
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Federal Reserve Chair Jerome Powell made clear Wednesday the central bank is close to done raising interest rates, but his colleagues delivered the message that resonated: Borrowing costs must remain higher for longer amid renewed strength in the economy.
After a series of rapid rate hikes over the past 18 months, the Fed can now “proceed carefully,” Powell said — a sentiment he repeated at least a dozen times Wednesday during a press conference that followed the central bank’s decision to leave rates unchanged.