Powell Repeats Need for Further Rate Hikes

Jerome Powell, United States (U.S) Federal Reserves Chairman said at the European Central Bank (ECB) forum on central banking that more restriction is coming.

Powell hints that interest rates will need to rise again this year, seeing two more rate hikes, at least. At the same time, Powell added that he wouldn’t take consecutive-meeting rate hikes off the table.

The Fed left the target for the funds rate unchanged at 5%-5.25% in June but signaled rates may go to 5.6% by year-end if the economy and inflation do not slow down more.

Daily Global News reported that Powell, ECB President Christine Lagarde, BoE Governor Andrew Bailey, and BoJ Governor Kazuo Ueda were due to take part in a panel discussion at the ECB Forum on Central Banking around the opening bell in the US.

Market analysts said their comments could set the tone for the rest of the day.