Market Reacts Negatively to Powell's Hawkish Rate Outlook

The Federal Reserve is expected to raise interest rates again later this year, according to Fed Chair Jerome Powell. The central bank had paused rate hikes in June to assess the impact of previous increases on the economy. Powell also addressed concerns about the banking sector, stating that the US banking system is sound and resilient. The economy is still expanding, but inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go. Mortgage rates have fallen for the third week in a row, which is a good sign for the housing market over the next few months.