MNI BRIEF: Fed's Powell-Unlikely Next Rate Move Is a Hike
FOMC prepared to stay high for longer than previously expected, Powell says.
The Federal Reserve's next policy move is unlikely to be an interest rate increase, although the central bank is prepared to keep interest rates at current 23-year highs for as long as it takes to gain greater confidence inflation is heading sustainably back to 2%, Fed Chair Jerome Powell told reporters Wednesday.
"I think it's unlikely the next rate policy move will be a hike," Powell said.
"So far this year, the data have not given us that greater confidence. In particular, and as I noted earlier, readings on inflation have come in above expectations. It is likely that gaining such greater confidence will take longer than previously expected," Powell said. (MNI INTERVIEW: Fed Cuts Likely Delayed Till November-Lockhart)