Fed reaffirms half-point hikes likely in June, July

“If the economy performs about as expected,” Powell said, “it would be appropriate for there to be additional 50-basis-point increases at the next two meetings.”

NEW YORK: Federal Reserve (Fed) chair Jerome Powell reaffirmed that the central bank is likely to raise interest rates by a half percentage point at each of its next two meetings, while leaving open the possibility it could do more.

In a interview with the Marketplace public radio programme, Powell made clear his determination to get inflation under control but conceded that the Fed’s ability to do that without triggering a recession may depend on factors outside its control.