Fed policymakers Wednesday signaled their intention to reduce price pressures by raising the federal funds rate from a record near-zero low at their next meeting on March 15-16.
“We’re committed to our price stability goal,” Fed Chair Jerome Powell said at a news conference. “We will use our tools both to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched.”
Central bank officials last month tentatively planned three, quarter-point increases to the main rate this year. Since Powell’s comments yesterday, financial markets indicate expectations for five such increases in 2022, Peterson said during a webcast.
