They are the first remarks from the Fed chief since inflation spiked unexpectedly in January and the government reported an unusually large increase in nonfarm payrolls for that month.
While some of that unexpected economic strength may have been due to warm weather and other seasonal effects, Powell said the Fed was aware that it may also be a sign that the central bank needs to do more to moderate inflation, perhaps even come back. to higher rate increases than the quarter percentage point officials had been planning to stick with.
“If the totality of the data indicates that faster monetary tightening is warranted, we would be prepared to increase the pace of rate hikes,” Powell said.
With information from Reuters and AFP