Fed’s Jerome Powell Says Data Will Determine Size of Next Rate Increase

Federal Reserve Chair Jerome Powell said Wednesday officials were keeping their options open on interest rate increases. Employers added 517,000 jobs in January, with inflation at 4.7%. Market expectations of a half-point rate increase edged higher Wednesday.

March 10, 2023 . 3:07 AM

1 min read

Federal Reserve Chair Jerome Powell said Wednesday officials were keeping their options open over how much to raise interest rates this month after investors interpreted his comments Tuesday to suggest a half-percentage-point increase was likely.
Employers added 517,000 jobs in January, a surge that shocked economists who were anticipating hiring to slow.
Inflation’s decline late last year stalled in January with the 12-month inflation rate, excluding volatile food and energy items, at 4.7%.
Fed officials have been trying to curb investment, spending and hiring by raising rates, which makes it more expensive to borrow and can push down the price of assets such as stocks and real estate.
Market expectations of a half-point, or 50-basis-point, Fed rate increase edged higher Wednesday.