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

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."

MNI earlier reported that additional 50bp hikes were likely to follow Wednesday's move. (See: MNI: Fed Seen Taking Swift Steps To Neutral Rates By Summer).