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Fed's Powell: Rates Likely To Head Higher Than Expected


The US dollar strengthened against its competitors on the back of Jerome Powell’s hawkish speech before the Senate Banking Committee. Powell stated that the Federal Reserve is prepared to go higher for longer because a series economic data reports shows a tight labor market and high inflation figures.

Blackrock’s economists suggested that “we think there’s a reasonable chance that the Fed will have to bring the Fed Funds rate to 6%, and then keep it there for an extended period to slow the economy and get inflation down to near 2%.”

Fed’s Jerome Powell: More rate hikes likely to come

Jerome Powell, Chairman of the Federal Reserve, stated that interest rates will likely rise faster than central bank policymakers expected. In his remarks, Powell mentioned: “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. 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.”

Bank of Canada (BoC), decides interest rates

The BoC’s governing board will convene on Wednesday to decide on interest rates. The benchmark…

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