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Saying economy is strengthening, Fed’s Powell suggests faster pace of interest rate hikes - Chevy Chase Trust

Saying economy is strengthening, Fed’s Powell suggests faster pace of interest rate hikes

New Federal Reserve Chairman Jerome H. Powell indicated Tuesday that the economy’s prospects have strengthened and that the central bank could lift short-term rates at a quicker pace than anticipated. Speaking before the House Financial Services Committee, Powell said, “We’ve seen some data that will, in my case, add some confidence to my view that inflation is moving to target. We’ve seen continued strength around the globe and we’ve seen fiscal policy become more simulative.”

Craig Pernick, Head of Fixed Income, commented, “He is saying more of the same, but he’s saying it with a tone with words like ‘tailwinds’ instead of headwinds and that the outlook remains strong.”

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