“It’s fair to say that’s the question we’re asking is ‘Should we hike more?’” Powell said, when asked whether a majority of policymakers still expected another rate increase would be necessary this year.
The Federal Reserve signalled that a run-up in long-term Treasury yields reduces the impetus to raise interest rates again, even as Chair Jerome Powell left the door open to another hike to tame inflation.
While Powell indicated policymakers could raise rates when they meet next month, he also allowed that officials may be done with their tightening campaign. He said he wasn’t yet confident to judge whether monetary policy was restrictive enough to bring inflation back to the Fed’s 2% target.
