Powell: Fed to Keep Hiking Rates Until It Controls Inflation

Powell: Fed to Keep Hiking Rates Until It Controls Inflation
Federal Reserve Board Chair Jerome Powell speaks during a news conference at the Federal Reserve in Washington on May 4, 2022. Alex Brandon/AP Photo
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WASHINGTON—Chair Jerome Powell on Tuesday underscored the Federal Reserve’s determination to keep raising interest rates until there is clear evidence inflation is steadily falling—a high-stakes effort that carries the risk of causing an eventual recession.

The Fed’s increases in its benchmark short-term rate typically lead, in turn, to higher borrowing costs for consumers and businesses, including for mortgages, auto loans, and credit cards.