"Powell's Stance on Rate Hikes and Inflation Target"

Federal Reserve Chairman Jerome Powell stated that he would not rule out consecutive interest rate hikes, emphasizing the risk of doing too little to combat inflation. While speaking at the European Central Bank Forum on Central Banking, Powell acknowledged the possibility of raising rates at consecutive policy meetings. He also reiterated that most policymakers expect two more rate hikes this year. Powell highlighted the stronger-than-expected growth, tight labor market, and higher inflation as factors influencing the need for potentially restrictive monetary policy. However, he stated that the Fed is a long way from considering policy loosening and does not see government spending as a major driver of inflation.