MNI BRIEF: Powell Says March Hike Size Yet Undecided

Federal Reserve Chair Jerome Powell on Wednesday emphasized the size of the March interest rate increase remains undecided and the FOMC decision will rely on incoming data and the evolving outlook, after market pricing for a 50 bp hike this month rose sharply Tuesday.

"If -- and I stress that no decision has been made on this -- but if the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," he told lawmakers on Capitol Hill. "We have some potentially important data" coming including the February jobs, CPI and retail sales reports, he added when asked whether the Fed will reaccelerate the pace of its rate increases. "They're going to be important in our assessment."

"The ultimate level of interest rates is likely to be higher than expected," he said, repeating Tuesday's message in testimony to the Senate Banking Committee. (See: MNI INTERVIEW- Fed Will Hike Rates To 6% Or More- Gorodnichenko)