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    Fed Chairman Powell Suggests Higher Interest Rates Ahead


    Federal Reserve Chairman Jerome Powell testified before Congress on Tuesday, saying that the latest economic data has come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated.[0] Powell added that the Fed could increase the pace of rate hikes if the totality of the data warrants it.[1] The chairman also acknowledged the need to raise the debt ceiling and noted that inflationary pressures are still running higher than expected, meaning that the Fed may have to continue increasing rates in order to bring it back to the central bank's 2% target.[2] Powell's comments sent the stock market lower, as investors worry about the possibility of higher rates and a prolonged economic slowdown. With the Fed's rate-setting committee set to meet later this month and with more economic data due this week, investors will be closely watching Powell and other Fed officials for further signs of future rate hikes.[3]

    0. “Powell: ‘A Long Way to Go' on Taming Inflation” U.S. News & World Report, 7 Mar. 2023,

    1. “Powell says that Fed may need more aggressive rate hikes” The Hill, 7 Mar. 2023,

    2. “Stock Market Today: Blue Chip Stocks Lead Market Lower After Powell Speech” Kiplinger's Personal Finance, 7 Mar. 2023,

    3. “What to watch as Fed Chair Powell testifies before Congress” CNN, 7 Mar. 2023,

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