U.S. Federal Reserve Chairman Jerome Powell said he will press on with the steepest tightening in a generation to curb inflation while giving officials more flexibility on coming moves amid signs of a broadening economic slowdown.
Policymakers raised the benchmark lending rate 75 basis points on Wednesday to a range of 2.25% to 2.5% and said they anticipate ¡°ongoing increases¡± will be appropriate. Just how much depends on the data, the central bank chief said, stepping away from the specific guidance he gave at the June meeting, though he didn¡¯t take another similar-sized move off the table.
¡°While another unusually large increase could be appropriate at our next meeting, that is a decision that will depend on the data,¡± Powell said. ¡°The labor market is extremely tight, and inflation is much too high.¡±
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