Thu. Mar 23rd, 2023

Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee March 7, 2023 in Washington, DC.

Win Mcnamee | Getty Images News | Getty Images

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Powell has spoken: Higher rates and faster hikes are on the table.

What you need to know today

The bottom line

There’s no need to speculate anymore — in the first of his Congressional hearings, Powell said outright that the Fed might raise interest rates higher and faster than officials had projected last year. His exact words: “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated … we would be prepared to increase the pace of rate hikes.” This means that rates could not only go beyond 5.25%, but the Fed could also return to 50-basis-point hikes.

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