![]() At their meeting last week, the Fed’s policymakers kept their key rate unchanged after 10 straight hikes, buying time to see what impact higher rates are having on the economy. The central bank has raised its benchmark rate aggressively since March 2022 in a push to slow the economy and reduce inflationary pressure. 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. On Thursday, Powell noted that “nearly all” Fed policymakers ”expect that it will be appropriate to raise interest rates somewhat further by the end of the year.” On Wednesday, he addressed the House Financial Services Committee and sounded a similar message that some further rate hikes are likely coming this year. Powell was testifying to the Senate Banking Committee on the second day of semi-annual testimony to Congress. ![]() Speaking to a Senate committee, Powell noted that “inflation has moderated somewhat since the middle of last year.” Still, the Fed chair stressed, “inflation pressures continue to run high.” 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.
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