Powell reinforces Fed's cautious approach toward further interest rate hikes
Federal Reserve Chair Jerome Powell suggested that the Fed is in no hurry to further raise its benchmark interest rate, given evidence that inflation pressures are continuing to ease at a gradual pace
By CHRISTOPHER RUGABER
Published - Nov 09, 2023, 02:18 PM ET
Last Updated - Nov 09, 2023, 02:19 PM EST
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell suggested Thursday that the Fed is in no hurry to further raise its benchmark interest rate, given evidence that inflation pressures are continuing to ease at a gradual pace.
Powell said he believes the Fed faces nearly equal risks of raising its benchmark rate too high, which could derail the economy, or not raising it high enough, which could allow inflation to persist or worsen.
“We will continue to move carefully,” he said, a phrase he has used often that is widely interpreted to mean that the Fed will closely monitor incoming data but it isn't leaning toward a hike.
