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Central Banks

Powell Signals Smaller Rate Hikes Ahead on Path to Higher Peak

  • Fed could slow increase pace as soon as December, he says
  • Chair Powell calls any discussion of a pause ‘very premature’

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WATCH: Federal Reserve Chairman Jerome Powell speaks about the decision to raise its benchmark interest rate by three-quarters of a percentage point.Source: Bloomberg
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Federal Reserve Chair Jerome Powell left little doubt that he’s prepared to push interest 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 central bank 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.”