Fed’s rate increase conundrum


Powell: There are a number of proposals in the works. They have not been finalised. — AP

WASHINGTON: Further Federal Reserve (Fed) rate increases are “a pretty good guess” of where the central bank is heading if the economy continues in its current direction, Fed chairman Jerome Powell said in remarks to lawmakers on Capitol Hill.

In response to a question late in a three-hour hearing before the House Financial Services Committee, Powell said he would not characterise the Fed’s decision last week not to increase rates as a “pause,” and noted the fact that a majority of policymakers see two more quarter-point rate increases as likely by the end of the year.

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