Powell Says Interest Rates Are ‘Likely to Be Higher’ Than Previously Thought

Powell Says Interest Rates Are , ‘Likely to Be Higher’ Than Previously Thought.

CNBC reports that the Federal Reserve chairman made the announcement on March 7.

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He cited data from earlier this year indicating that the inflation deceleration observed in late 2022 has reversed.

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The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated, Jerome Powell, Federal Reserve chairman, via statement.

If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes, Jerome Powell, Federal Reserve chairman, via statement.

CNBC reports that over the past year, the benchmark fund rate has been raised eight times by the Federal Reserve.

The target level is currently between 4.5%-4.75%.

But according to the current economic trends, Powell says the Fed's fight against inflation remains far from over.

We have covered a lot of ground, and the full effects of our tightening so far are yet to be felt.

Even so, we have more work to do, Jerome Powell, Federal Reserve chairman, via statement.

Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time, Jerome Powell, Federal Reserve chairman, via statement.

The historical record cautions strongly against prematurely loosening policy.

We will stay the course until the job is done, Jerome Powell, Federal Reserve chairman, via statement