Jay Powell sent his strongest signal so far that the Federal Reserve is prepared to raise interest rates by half a percentage point at its meeting next month as it steps up efforts to stamp out soaring inflation.
“It is appropriate in my view to be moving a little more quickly,” the chair of the US central bank said at a panel hosted by the IMF. “We make these decisions at the meeting and we’ll make them meeting by meeting, but I would say that 50 basis points will be on the table for . . . May.”
Powell’s comments underscore a shift in tone from several of Fed officials, who have recently embraced the need for the central bank to take more forceful action to tame the highest inflation in 40 years.