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Jay Powell warns Fed is prepared to return to bigger interest rate rises

Jay Powell warned the US Federal Reserve is prepared to switch back to bigger interest rate rises if US economy continues to grow too quickly. Traders are now roughly evenly split between a half-point rate rise and a quarter-point increase.

1 min read
  • Jay Powell warned the Federal Reserve is prepared to switch back to bigger interest rate rises if US economy continues to grow too quickly.
  • Recent economic data is “stronger than expected”, said Powell.
  • Traders are now roughly evenly split between a half-point rate rise at the Fed’s next meeting and a quarter-point increase.
  • Powell is open to ratcheting up the pace of rate increases in face of unexpectedly persistent price pressures.
  • Powell suggested job losses ahead to get inflation back down to the Fed’s 2 per cent target.
Jay Powell warns Fed is prepared to return to bigger interest rate rises
High-stakes testimony before Senate committee comes as central bank struggles to cool US economy
Financial TimesJames Politi

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