"Powell Warns of High Inflation, Signals Readiness to Raise Rates"

Federal Reserve Chair Jerome Powell warned that inflation remains too high and indicated that the central bank is prepared to raise interest rates further if necessary. While acknowledging some progress, Powell emphasized the need for vigilance and stated that policy will remain restrictive until inflation is moving sustainably towards the Fed's 2% target. He highlighted the risks of both doing too much and too little, and expressed uncertainty about the neutral rate of interest. Powell's remarks caused market volatility, with stocks falling from their session highs and Treasury yields rising.