Battle To Tame Inflation Has “Long Way To Go”, Says Fed Chief
The Federal Reserve paused rate hikes at last week’s policy meeting, but Fed Chairman Jerome Powell told the House Financial Services Committee on Wednesday that more increases were likely.
“Inflation has moderated somewhat since the middle of last year,” he?said,?but “inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go.” He added: “Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year.”
Meanwhile,?Fed funds futures?continue to lean toward a one-and-done scenario, based on the highest estimated probability estimates for the next three Fed meetings. After a 25-basis-points increase at the July meeting, the crowd assumes the Fed funds target rate will peak at 5.25%-5.50%.