The Federal Reserve will likely keep raising interest rates higher than officials had first thought, Chair Jerome Powell told lawmakers in Washington.
In his first of two appearances on Capitol Hill on Tuesday, Powell cautioned the Senate Banking Committee that the latest string of better-than-expected economic data and a modest reversal in the disinflation trend could enable the U.S. central bank to tighten monetary policy faster.
This means one of two things: the benchmark federal funds rate could climb higher than the median rate of 5.1 percent in the December Survey of Economic Projections (SEP), or the Federal Open Market Committee (FOMC) could pull the trigger on rate hikes larger than 25 basis points….