Federal Reserve Chair Jerome Powell said the central bank will keep raising interest rates to tame inflation following the steepest hike in almost three decades, though policy makers must be “nimble” as various shocks buffet the world’s largest economy.
“We anticipate that ongoing rate increases will be appropriate,” Powell said Wednesday in his semiannual testimony to the Senate Banking Committee. “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We therefore will need to be nimble in responding to incoming data and the evolving outlook.”
Powell’s remarks largely reiterated comments at a press conference last week after he and his colleagues on the Federal Open Market Committee raised their benchmark lending rate 75 basis points -- the biggest increase since 1994 -- to a range of 1.5% to 1.75%.