Fed's Powell reinforces likelihood of more rate hikes because of persistently high inflation
Chair Jerome Powell reiterated that the Federal Reserve will likely raise interest rates at least once more this year because of persistently high inflation in the economy’s service sector and the surprisingly tight job market
By PAUL WISEMAN
Published - Jun 22, 2023, 12:30 PM ET
Last Updated - Jun 22, 2023, 12:30 PM EDT
WASHINGTON (AP) — Chair Jerome Powell reiterated Thursday that the Federal Reserve will likely raise interest rates at least once more this year because of persistently high inflation in the economy's service sector and the surprisingly tight job market.
Powell was testifying to the Senate Banking Committee on the second day of semi-annual testimony to Congress. On Wednesday, he addressed the House Financial Services Committee and sounded a similar message that some further rate hikes are likely coming this year.
In May, consumer prices were up 4% in May compared with 12 months earlier, down from a year-over-year peak of 9.1% in June 2022, but still double the Fed's 2% inflation target.
