Powell’s Shift on Rate Hikes Comes as Officials Prepare for March Meeting

Fed chief Jerome Powell on Tuesday served warning that the Federal Reserve may need to re-accelerate the rate of interest-rate hikes, as investors reacted by sending two-year Treasury yields above 5% for the first time since 2007.

March 8, 2023 . 4:03 PM

1 min read

Less than five weeks after the Federal Reserve slowed its pace of interest-rate hikes, Chair Jerome Powell on Tuesday served warning it may need to re-accelerate.
Investors reacted, sending two-year Treasury yields above 5% for the first time since 2007.
For the March 21-22 Fed meeting, futures trading suggests a 50 basis-point rate increase is more likely than 25.
Powell’s shift could feed questions about whether the Fed was premature in slowing to a quarter-point clip last month.
Goldman Sachs Group Inc. raised its forecast for the Fed’s peak rate by a quarter point, to a range of 5.5% to 5.75%.