Federal Reserve Chairman Jerome Powell stressed that monetary policymakers have not yet decided on the size of the rate hike later this month, and said it hinges on upcoming jobs and inflation reports.
On the second day of congressional testimony, Powell told the House Financial Services Committee on Wednesday, “We haven’t made any decisions regarding the March meeting.”
The head of the US central bank reiterated his message from Tuesday that the Federal Reserve is likely to raise interest rates higher than previously expected and that it may move faster if the numbers continue to point to solid economic activity. On Wednesday, however, he deviated from his prepared remarks, rephrasing his statement by adding that the bank “has not taken any decision”.
“I stress that a decision has not yet been made on that – but, if the aggregate data indicates that an acceleration of austerity measures is warranted, we will be ready to increase the pace of rate hikes,” he said.
Referring to the latest US employment reading released as his testimony began on Wednesday as well as the February employment report due on Friday and consumer price data on March 14, Powell said, “We have some important data coming soon.”
US companies added more jobs than expected in February