Federal Reserve Chair Jerome Powell warned on Tuesday that the central bank will likely have to increase its key interest rates higher than policymakers initially expected.
"The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated ... If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," Powell noted in remarks prepared to be delivered before Congress.
Commenting on the elevated inflation, Powell stressed that the Fed's battle against soaring consumer prices isn't over. "We have covered a lot of ground, and the full effects of our tightening so far are yet to be felt. Even so, we have more work to do," he concluded.
