Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Powell Affirms Fed on Track for March Hike, Will Move With Care

Economy Mar 03, 2022 11:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Powell Affirms Fed on Track for March Hike, Will Move With Care

(Bloomberg) -- Federal Reserve Chair Jerome Powell reaffirmed the U.S. central bank is on track to raise interest rates this month and commence a series of hikes to curb decades-high inflation, though Russia’s invasion of Ukraine means it will move “carefully.” 

“I would be recommending and supporting a one quarter of 1% increase” at the March meeting, he told the Senate Banking Committee Thursday. “We are prepared to raise by more than that” if inflation doesn’t come down, he added. 

“I do think it’s going to be appropriate for us to continue to proceed along the lines that we had mind before the Ukraine invasion happened and that was to raise interest rates at the March meeting and continue through the course of the year,” he said. “In this very sensitive time at the moment, I think it’s appropriate for us to be careful in the way we conduct policy simply because things are so uncertain and we don’t want to add to that uncertainty.”

Fed officials are pivoting to tackle the fastest inflation in 40 years and a few have publicly discussed the potential need to hike by a half point sometime this year if inflation comes in too hot. They get February data on consumer prices on March 10. Powell previously told a House panel Wednesday that he’ll propose a 25 basis-point increase when the U.S. central bank meets March 15-16. 

During Thursday’s hearing, Powell said that the Russian attack was causing risks both to inflation -- via higher energy and commodity prices -- as well as to growth, if increased geopolitical risks dim investment or cause consumers to temper spending. He also noted that higher gas prices typically also take a bite out of household budgets. 

“We need to be alert and nimble as we make decisions,” Powell told senators. He noted that the surge in energy prices will likely spill into inflation and if that shift proved to be lasting, it could put upward pressure at the “margin” to longer-term inflation expectations that the central bank wants to stop creeping up -- especially because price pressures are already elevated.

Russia’s attack has whiplashed financial markets and sent energy and commodity prices surging, with West Texas Intermediate crude hovering just under $110 a barrel.

Powell’s confirmation for a second term has been stalled by Republican opposition to President Joe Biden’s selection of Sarah Bloom Raskin to be vice chair for supervision.

©2022 Bloomberg L.P.

Powell Affirms Fed on Track for March Hike, Will Move With Care
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email