Smaller rate hikes are likely coming in December, says Fed Chair Powell | CNN Business

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The Federal Reserve could pull back on the pace of its aggressive rate hikes as soon as December, Fed Chairman Jerome Powell said at an economic forum.

“The time for moderating the pace of rate increases may come as soon as the December meeting,” he said in remarks at the Hutchins Center on Fiscal and Monetary Policy, his last public appearance before the central bank enters a blackout period ahead of its December 13-14 policymaking meeting. “Despite some promising developments, we have a long way to go,” Powell said, noting that the Fed has “not seen clear progress” on decades-high inflation plaguing the economy.

The decline in job openings is a positive development, Powell said Wednesday. While the relationship between job openings and unemployment is a “very fraught one,” he noted, he and other Fed officials believe there’s a possibility that the labor market could come back into balance via a decline in job openings as opposed to a spike in job losses. “We’ve seen that so far, but it’s way too early,” he said.

 

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