Skip to Content

Powell’s warning: Fed to tighten credit faster than expected

<i></i><br/>
KMIZ

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell took a sharp and unexpected turn Tuesday toward tightening credit for consumers and businesses in the face of mounting concerns about high inflation. Powell signaled that the Fed will likely act more quickly to phase out its ultra-low-interest rate policies even as the emergence of the new omicron variant of COVID-19 has raised fresh doubts about both the strength of the economy and the direction of inflation. The Fed chair told the Senate Banking Committee that the central bank’s policymakers will discuss at their next meeting in mid-December whether to accelerate the reduction of their bond purchases, which have been intended to lower long-term borrowing costs.

Article Topic Follows: AP National Business

Jump to comments ↓

Associated Press

BE PART OF THE CONVERSATION

ABC 17 News is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content