NEW: Powell Indicates Fed Will Raise Interest Rates at Upcoming Meeting

NEW: Powell Indicates Fed Will Raise Interest Rates at Upcoming Meeting

Fed Chairman Jerome Powell said Wednesday morning that the central bank intends to raise its policy interest rate, following the conclusion of its two-day meeting on March 16. 

Powell didn’t comment on the size of the planned rate hike in his remarks. 

“With inflation well above 2% and a strong labor market, we expect it will be appropriate to raise the target range for the federal funds rate at our meeting later this month,” said Powell in remarks prepared for delivery to the House Financial Services Committee.

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MarketWatch reports:

"Most economists think the Fed will hike rates by a quarter-point at the March meeting. Speculation of a half-percentage point hike has waned in the aftermath of Russia’s invasion of Ukraine.

The Fed is expected to continue to raise rates throughout the year. The central bank’s policy rate has been stuck near zero since the coronavirus pandemic struck in early 2022 to help the economy weather the storm. With inflation surging, the central banks wants — as the first order of business — to get rates closer to “neutral” or around a 2.5% rate, in orderly and regular steps."