​MNI BRIEF: Fed’s Powell Inclined to Back 25BP March Hike

Fed Chair Jerome Powell said he expects to back a 25-basis-point interest rate hike at the upcoming March meeting but suggested the central bank will move cautiously after that as it assesses the effects of the Russian invasion of Ukraine on the global and U.S. economies.

“I’m inclined to support a 25 basis point rate hike,” Powell told lawmakers. “We will proceed but we will proceed carefully. We’re going to avoid adding uncertainty to what is already an extraordinarily uncertain and challenging moment.”

MNI reported this week the Fed is keepings its options open, including the possibility of more aggressive hikes later in the year if inflation does not come down as expected.