NEW YORK (Reuters) – Federal Reserve Chairman Jerome Powell said the central bank could revise the terminal rate higher at its next policy meeting.
“The data we’ve seen so far, and we still have more data to see … suggest that the terminal rate could be higher than what we set in December,” Powell told the Senate Banking Committee.
At their December meeting, Fed officials set a 5.1% terminal rate for federal funds in 2023. The current federal funds target rate is between 4.5% and 4.75%. and will almost certainly be increased at the Federal Open Market Committee meeting in March, when the economic and monetary policy forecasts will also be updated.
(Translated by Luca Fratangelo, edited by Francesca Piscioneri)