Powell is asked to answer a "yes or no" question on whether the Fed will pause rate increases. Powell: "I don’t do yes or no."
Yesterday, Powell said: New data suggests “the ultimate level of rates is likely to be higher than previously anticipated"
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Mr. Powell told the Senate Banking Committee. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”
“We’re looking at a reversal, really, of what we thought we were seeing to some extent,” said Mr. Powell.
But the breadth of the reversal, together with revisions to previous data, “suggests that inflationary pressures are running higher than expected at the time of our previous [rate-setting] meeting,” Mr. Powell said.
"You claim there is only one solution: Lay off millions of workers," Warren said.
"Raising interest rates certainly won't stop business from exploiting all these crises to jack up prices," said Senator Sherrod Brown, a Democrat from Ohio who chairs the committee.
"The only way to get this sticky inflation down is to attack it at the monetary side and the fiscal side. The more we help on the fiscal side the fewer people you will have to throw out of work," said Senator John Kennedy, a Republican from Louisiana.
"The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy," Powell said, adding later in the hearing that "the social costs of failure are very, very high."
