Fed Chair Powell notes ‘highly uncertain’ Ukraine impact, but says rate hikes are still coming

  • Fed Chairman Jerome Powell said Wednesday he still sees interest rate hikes ahead though he noted the “implications for the U.S. economy are highly uncertain” from the Ukraine war.
  • Powell called the labor market “extremely tight” and said inflation has risen well above the Fed’s 2% target.
  • His remarks are part of mandatory appearances this week before House and Senate committees in Congress.
  • Federal Reserve Chairman Jerome Powell still sees interest rate hikes coming, but noted Wednesday that the Russia-Ukraine war has injected uncertainty into the outlook. Powell said he sees a series of quarter-percentage-point increases coming, though he left open the possibility of moving more aggressively should inflation persist. In remarks prepared for dual appearances this week before House and Senate committees in Congress, the central bank chief acknowledged the “tremendous hardship” the Russian invasion of Ukraine is causing.  “The implications for the U.S. economy are highly uncertain, and we will be monitoring the situation closely,” Powell said.

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