The January inflation report, released earlier today, showed a slight fall in the rate of price rises in the United States. But inflation still remains worryingly high and Federal Reserve chair Jerome Powell has warned that more interest rate hikes may be required.
“There has been an expectation that it will go away quickly and painlessly — and I don’t think that’s at all guaranteed; that’s not the base case,” Powell told the Economic Club last week.
“The base case for me is that it will take some time, and we’ll have to do more rate increases, and then we’ll have to look around and see whether we’ve done enough.”