MNI BRIEF: Fed's Powell Says More Policy Tightening Coming

Federal Reserve Chair Jerome Powell said Wednesday interest rates are likely to rise further in the face of a very strong labor market but the pace of hikes is undecided and dependent on data.

"We think we've come a long way. We also think that there's more tightening power coming through. Really policy hasn't been restricted for very long," he told the European Central Bank's annual conference in Sintra, Portugal, noting a majority of FOMC members saw the need for two or more hikes this year.

A tighter-than-expected labor market is driving spending and demand and "reallypullingtheeconomy," he added. "Sothattellsusthatalthoughpolicyisrestrictive,itmaynotberestrictiveenough,andithasnotbeenrestrictedforlongenough."