Interest Rates May Rise Higher Than Expected, Warns FED Chair Powell ByEvans KaranjaPRO INVESTOR Updated: 07 March 2023 DisclosureWe sometimes use affiliate links in our content, when clicking on those we might receive a commission – at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy. Join Our Telegram channel to stay up to date on breaking news coverage Federal Reserve Chairman Jerome Powell has warned that the US central bank may increase interest rates higher than expected to combat inflation. What: US Federal Reserve Chairman Jerome Powell has warned that the central bank may increase interest rates higher than anticipated. Why: The Fed hopes to control inflation and stabilize the economy to address the mounting inflation pressures and supply chain disruptions affecting the country’s economy due to the COVID-19 pandemic. What next: This move could lead to slower economic growth and higher borrowing costs for consumers and businesses, but it may be necessary to bring inflation back down to the target of 2%. Powell spoke before the United States Senate Committee on Banking, Housing, and Urban Affairs (Senate Banking Committee). Powell said that the latest economic data had come in stronger than expected, suggesting that the ultimate level of interest rates is likely to be higher than previously anticipated. If the data indicated that fast tightening was necessary, the Fed would be prepared to increase the rate hikes. Despite recent moderation, Powell also noted that getting inflation back down to 2% will likely be bumpy. “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said. “If the totality of the data were to indicate that fast tightening is warranted, we would be prepared to increase the pace of rate hikes,” he added. The comments come as the US economy faces rising inflation pressures and supply chain disruptions caused by the COVID-19 pandemic. The Fed’s decision to potentially increase interest rates may help control inflation, but it could also lead to slower economic growth and higher borrowing costs for consumers and businesses. More News US SEC files a lawsuit against Green United alleging that the firm sold fake crypto mining gear Coinbase’s upcoming network, Base, will likely feature transaction monitoring Biggest Crypto Gainers Today, March 7- MANA, GMX, FGHT, CCHG, METRO, TARO Fight Out (FGHT) - Train to Earn Crypto Rating CertiK audited & CoinSniper KYC Verified Early Stage Presale Live Now Earn Free Crypto & Meet Fitness Goals LBank Labs Project Partnered with Transak, Block Media Staking Rewards & Bonuses Learn More Join Our Telegram channel to stay up to date on breaking news coverage