U.S. Federal Reserve Chair Jerome Powell left little doubt that he’s prepared to push rates as high as needed to stamp out inflation, even as the central bank eyes a downshift to a slower pace of increases.
Addressing reporters Wednesday after the Fed raised rates by 75 basis points for the fourth time in a row, Powell said "incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.”
The move lifts the Fed’s benchmark to a 3.75% to 4% range, from nearly zero in March. Even so, the U.S. economy has shown remarkable resilience: Rising borrowing costs have slowed the housing market, but the inflation rate is stubbornly stuck near 40-year highs.