Free Trial
GOLD

Firmer In Asia

CHINA RATES

China Repo Rates Diverge on Wednesday

US TSYS

Off Lows

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI: Fed's Powell Signals Additional 50BP Rate Hikes Coming

(MNI) Washington

Half-point hikes in June and July would take the fed funds rate to a 1.75%-2.0% target range.

Federal Reserve Chair Jerome Powell signaled Wednesday the FOMC could make two additional half-point interest rate increases "at the next couple of meetings" as inflation risks rise as a result of supply chain issues from the Ukraine war and Covid-19 lockdowns in China.

"We are on a path to move our policy rate expeditiously to more normal levels, assuming that economic and financial conditions evolve in line with expectations. There is a broad sense on the committee that additional 50 basis point increases should be on the table at the next couple of meetings," he told reporters after the Fed raised its benchmark overnight rate at its fastest pace in 22 years. ""Our expectation is if we see what we expect to see, we would have 50 basis point increases on the table at the next two meetings."

Keep reading...Show less
162 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Federal Reserve Chair Jerome Powell signaled Wednesday the FOMC could make two additional half-point interest rate increases "at the next couple of meetings" as inflation risks rise as a result of supply chain issues from the Ukraine war and Covid-19 lockdowns in China.

"We are on a path to move our policy rate expeditiously to more normal levels, assuming that economic and financial conditions evolve in line with expectations. There is a broad sense on the committee that additional 50 basis point increases should be on the table at the next couple of meetings," he told reporters after the Fed raised its benchmark overnight rate at its fastest pace in 22 years. ""Our expectation is if we see what we expect to see, we would have 50 basis point increases on the table at the next two meetings."

Keep reading...Show less