Fed President says there is still no decision on the magnitude of interest rate hikes in March – 08/03/2023 – Market

Fed Chairman Jerome Powell said on Wednesday that policymakers had not yet decided on the size of the rate hike they would almost certainly implement at their next policy meeting.

“We haven’t made any decisions about the March meeting yet, we won’t until we see the additional data” that will come between now and the March 21-22 Federal Open Market Committee (FOMC) meeting, he said. Powell to a House of Representatives panel as part of a hearing on economics and monetary policy.

“We’re not on a predefined path” and upcoming data will help determine whether a 0.25 percentage point or 0.50 percentage point increase is needed at this month’s meeting, Powell said.

Powell’s comments on Tuesday and Wednesday indicated the Fed may have to raise rates and keep them high longer in the face of strong activity data and persistently high inflation levels.