The continued strength of the U.S. economy could require further interest rate increases, Federal Reserve Chair Jerome Powell said Friday. Powell noted that the economy has been growing faster than expected and that consumers have kept spending briskly – trends that could keep inflation pressures high. He also reiterated the Fed’s determination to keep its benchmark rate elevated until price increases are reduced to the central bank’s two per cent target.
- U.S. inflation eased in October as Fed hikes take bite out of price spikes
- U.S. Fed leaves rates unchanged, but leaves door open to future hikes
- U.S. Fed holds interest rates steady but signals future hikes could be needed