The Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the 'totality' of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told U.S. lawmakers on Tuesday.
Federal Reserve Chair Jerome H. Powell testifies before a U.S. Senate Banking, Housing, and Urban Affairs Committee hearing on "The Semiannual Monetary Policy Report to the Congress" on Capitol Hill in Washington, U.S., March 7, 2023. REUTERS/Kevin Lamarque
NEW YORK, March 7 - The Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the "totality" of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told U.S. lawmakers on Tuesday.
"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 in prepared remarks for a hearing before the Senate Banking Committee. U.S. stocks sold off, Treasury yields rose and the dollar extended a gain after Powell's comments, his first since inflation unexpectedly jumped in January and the U.S. government reported an unusually large increase in payroll jobs for that month.lost 35.76 points, or 0.88%, to 4,012.66, from around flat just before Powell's remarks were released BONDS: U.S. Treasury 10-year note after the remarks, and was last off 4/32 with a yield of 3.999%, up from just before the remarks and from 3.
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