Federal Reserve chair Jay Powell has warned that the US central bank might have to raise interest rates more than expected by investors because it will probably take a “significant period of time” to tame inflation given stronger labour market data.
Powell’s comments to the Economic Club of Washington on Tuesday were his first since data last week showed a surprising jump in jobs growth in January, which suggested the Fed might have to go further in its monetary tightening to cool down the economy.
But even as Powell stressed that the central bank was prepared to be more aggressive if needed, his intervention was not as hawkish as expected by some economists and market strategists.