Economic Policies

Fed’s Powell Predicts Further ‘Restriction,’ Including Rate Hikes at Consecutive Meetings

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Fed’s Powell Predicts Further ‘Restriction,’ Including Rate Hikes at Consecutive Meetings
Federal Reserve Board Chairman Jerome Powell speaks during a news conference following the Federal Open Market Committee meeting, at the Federal Reserve in Washington on June 14, 2023. Mandel Ngan/AFP via Getty Images
Andrew Moran
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Federal Reserve Chair Jerome Powell told a European Central Bank forum that the U.S. economy should expect more monetary policy restrictions to come and that inflation won’t return to its 2 percent target for a couple of more years.

During a panel discussion with his central bank counterparts, Powell said that policy hasn’t been restrictive for a long time. When the institution started its quantitative tightening campaign in March, real (inflation-adjusted) interest rates were negative and only recently touched positive territory.

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Andrew Moran
Andrew Moran
Author
Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."
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