Fed "Ready" to Raise Rates to Contain Inflation: Powell

Federal Reserve Chairman Jerome Powell said the bank would not hesitate to act to contain inflation and help ensure full employment if needed.

“If we have to raise interest rates more over time, we will, we will use our tools to control inflation,” Powell said during his testimony before the US Senate Banking Committee.

The Fed Chairman noted that at the moment there was more focus on inflation than the goal of full employment.

Powell added: “In order to reach a strong labor market with a high participation rate, it may take a long growth, and to get that we will need price stability, so high inflation is a serious threat to achieve maximum employment.”

Investors are betting that the Federal Reserve will raise interest rates in March, nearly two years after cutting it to a range of between zero and 0.25% during the outbreak of the pandemic in March 2020.