The world this week

Business

US Federal Reserve Board Chair Jerome Powell testifies before the Senate Banking, Housing and Urban Affairs Committee on "The Semiannual Monetary Policy Report to the Congress," in the Hart Senate Office Building on Capitol Hill in Washington, DC, on March 7, 2023. (Photo by Mandel NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
Image: Getty Images

Jerome Powell said that the Federal Reserve may have to raise interest rates higher than it had anticipated only recently, because new data on inflation, jobs and spending pointed to an overheating economy. The Fed lifted its main rate by a quarter of a percentage point at its last meeting, but investors now reckon it could increase the rate by half a point on March 22nd. Stockmarkets swooned.

This article appeared in the The world this week section of the print edition under the headline “Business”

From the March 11th 2023 edition

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