NATIONAL NEWS

Powell: Fed will decide on rate hikes ‘meeting by meeting’

Jun 22, 2022, 7:46 AM | Updated: Jun 25, 2022, 8:53 pm
Federal Reserve Chairman Jerome Powell speaks at a news conference following a Federal Open Market ...
Federal Reserve Chairman Jerome Powell speaks at a news conference following a Federal Open Market Committee meeting on May 04, 2022 in Washington, DC. Powell announced the Federal Reserve is raising interest rates by a half-percentage point to combat record high inflation. This is Powell's first in-person news conference since the pandemic began. (Photo by Win McNamee/Getty Images)
(Photo by Win McNamee/Getty Images)

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Wednesday underscored the Fed’s determination to raise interest rates high enough to slow inflation, a commitment that has fanned concerns that the central bank’s fight against surging prices could tip the economy into recession.

Powell said the pace of future rate hikes will depend on whether — and how quickly — inflation starts to decline, something the Fed will assess on a “meeting by meeting” basis.

Its decision-making will be based on “the incoming data and the evolving outlook for the economy,” Powell said in prepared testimony to the Senate Banking Committee, which he is addressing as part of the Fed’s semiannual policy report to Congress.

Powell’s testimony comes a week after the Fed raised its benchmark interest rate by three quarters of a percentage point, its biggest hike in nearly three decades, to a range of 1.5% to 1.75%. With inflation worsening, the Fed’s policymakers also forecast a more accelerated pace of rate hikes this year and next than they had predicted three months ago, with its key rate reaching 3.8% by the end of 2023. That would be its highest level in 15 years.

Concerns are growing that with inflation at a four-decade high, the Fed will end up tightening credit so much as to cause a recession. This week, Goldman Sachs estimated the likelihood of a recession at 30% over the next year and at 48% over the next two years.

KSL 5 TV Live

Top Stories

National News

Chick-fil-A is selling merchandise for the first-time ever. (CNN)...
Jordan Valinsky, CNN Business

Chick-fil-A is selling merchandise for the first time ever

If your holiday wish list includes a Chick-fil-A sauce-themed blanket or a chicken nugget pillow, look no further.
10 hours ago
Aerial photograph of the dominant fissure 3 erupting on the Northeast Rift Zone of Mauna Loa, taken...
Caleb Jones and Jennifer Sinco Kelleher, Associated Press

Hawaii volcano eruption has some on alert, draws onlookers

The first eruption in 38 years of the world’s largest active volcano is attracting onlookers to a national park for “spectacular” views of the event, and it's also dredging up bad memories among some Hawaii residents.
10 hours ago
A steeple was blown off a church in the community of Steens, Mississippi, after a strong storm move...
Associated Press

Storms cause major tornadoes, flooding around the South

Residents in several towns across Louisiana and Mississippi have taken cover amid the blare of tornado sirens amid a severe weather outbreak erupting in the Deep South.
10 hours ago
Cecily Aguilar pleaded guilty to being involved in covering up the death of Army Spc. Vanessa Guill...
Joe Sutton, Matt Phillips and Amir Vera, CNN

Cecily Aguilar pleads guilty in connection with death of Fort Hood soldier Vanessa Guillen

Cecily Aguilar, who was arrested in 2020 in connection with the disappearance of Army Spc. Vanessa Guillen, pleaded guilty Tuesday to being involved in the cover-up of her death, according to CNN affiliate KWTX and an attorney for Guillen's family.
1 day ago
The download page for ByteDance Ltd.'s TikTok app is arranged for a photograph on a smartphone in S...
Stella Chan and Leslie Perrot, CNN

South Dakota governor bans state employees from using TikTok on government devices

South Dakota's governor signed an executive order on Tuesday banning state agencies, employees and contractors from accessing TikTok on government devices
1 day ago
Kim Kardashian West and Kanye West attend the WSJ. Magazine 2019 Innovator Awards sponsored by Harr...
ANDREW DALTON, AP Entertainment Writer

Kim Kardashian and Ye settle divorce, averting custody trial

Kim Kardashian and Ye have reached a settlement in their divorce, averting a trial that had been set for next month.
1 day ago

Sponsored Articles

house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 reasons you may want to consider apartment life over owning a home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Take this quiz before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t let a ransomware attack get you down | Protect your workplace today with cyber insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
Portrait of smiling practitioner with multi-ethnic senior people...
Summit Vista

How retirement communities help with healthy aging

There are many benefits that retirement communities contribute to healthy aging. Learn more about how it can enhance your life, or the life of your loved ones.
Powell: Fed will decide on rate hikes ‘meeting by meeting’