Stocks Surge After Powell Says Fed Not Afraid To Raise Rates Further If Higher Inflation Persists

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The Federal Reserve had previously signaled at its policy meeting last month that there would likely be three interest rate hikes this year, with the first coming as soon as March

Stocks were lower ahead of Powell’s testimony—with the Dow Jones Industrial Average down as much as 250 points, but all three indexes pared back losses by midday after his comments.

Powell, who is expected to win a second term as Fed chairman, faced questions at his Senate confirmation hearing about how the central bank will adjust monetary policy to combat inflation. While Powell predicted that supply chain issues would normalize later this year, which should help ease inflationary pressures, he said that the Fed will not be afraid to raise interest rates further than projected if inflation remains high.

 

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Fed's Powell: Inflation poses a major threat to job market | AP NewsWASHINGTON (AP) — Chair Jerome Powell acknowledged Tuesday that high inflation has emerged as a serious threat to the Federal Reserve's goal of helping put more Americans back to work and that the Fed will raise rates more than it now plans if needed to stem surging prices. Maybe just call Trump 📞 he was doing great. It can't hurt for Biden to get help. Biden is destroying this country. How is anyone that voted for him not embarrassed at what they enabled? Nobody should be surprised by rising inflation. This has been building for years. Many have been warning about it, but no one listened Unchecked deficit spending, with cheap money policies do it every time.
Source: AP - 🏆 728. / 51 Read more »