Powell reinforces expectations of sharp rate hike next month

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — The Federal Reserve must move faster than it has in the past to rein in high inflation, Chair Jerome Powell said, signaling that sharp interest rate increases are likely in the coming months, beginning at the Fed’s next policy meeting in May. In a panel discussion held by the International Monetary Fund during its spring meetings, Powell also suggested that “there’s something in the idea of front-loading” aggressive rate hikes as the Fed grapples with inflation that has reached a four-decade high. “So that does point in the direction of [a half-point increase] being on the table” for the Fed’s next policy meeting May 3-4, Powell said.