Fed chair promises faster pace of rate hikes – rate peak could be higher than expected

Washington The head of the US Federal Reserve, Jerome Powell, is preparing investors for another strategy shift. There could be larger interest rate hikes again at the upcoming meetings of the central bank, he said on Tuesday at a hearing before the US Senate. It was only in February that he slowed the pace of interest rate hikes and promised only smaller steps in the future.

“Although inflation has moderated in recent months, there is still a long way to go before we return to an inflation rate of 2%. And it’s probably going to be bumpy,” Powell warned. “Should the body of data suggest that faster tightening is warranted, we would be willing to increase the pace of rate hikes.”