Chairman Powell cites an unexpectedly strong economy.
The Federal Reserve may speed up interest rate hikes more than expected in their endeavors to combat inflation, Federal Reserve Chairman Jerome Powell said during testimony before the Senate Banking Committee.
“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,” Powell said. “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.”
He said his goal is to reach the benchmark of 2 percent inflation, but the road to get back down to that number is “likely to be bumpy.”
At the end of 2022, officials with the Fed projected increases in interest rates during 2023 to between 5 percent and 5.5 percent.
As the Lord Leads, Pray with Us…
- For discernment for Chairman Powell as he heads the Federal Reserve.
- For the members of the Federal Reserve as they assess the effectiveness of rate hikes against inflation.
- For senators in the banking committee as they provide oversight to the federal agency.
Sources: Wall Street Journal, Daily Signal
