|Federal Reserve Chairman Jerome Powell said on Tuesday that he expects a series of interest rate hikes this year and “at some point perhaps later this year we will start to allow the balance sheet to run off." Some Republican senators also expressed worries over whether the Fed was veering too far from its stated objectives of price stability, full employment, and banking oversight. Many of the questions to Powell from both sides of the Senate aisle centered on inflation, which is running at a close to a 40-year high, but he insisted the surge is "transitory". “If we see inflation persisting at high levels longer than expected, then if we have to raise interest more over time, we will,” Powell said.|
U.S. consumer prices post the biggest rise in nearly 40 years; inflation close to peaking
CPI surges 7.0% year-on-year.
Washington DC, Jan 12 (Reuters).- U.S. consumer prices increased solidly in December as rental accommodation and used cars maintained their strong gains, culminating in the largest annual rise in inflation in nearly four decades, which bolstered expectations that the Federal Reserve will start raising interest rates as early as March.Read more ...