Powell puts increased rate hikes back on the table

Suggests higher terminal rate

Chair of the Federal Reserve Jerome Powell has warned that further and faster rate hikes may be necessary to stem continued inflation.

Speaking to the Senate banking committee, Powell suggested the "ultimate level of interest rates is likely to be higher than previously anticipated", due to "stronger than expected" data. Deutsche Bank raises expectations of peak Fed rates to 5.6% In his hawkish testimony, the Fed chair said if the "totality of the data were to indicate that faster tightening is warranted", the US central bank would be prepared to ramp up the pace of hikes once again. Rate rises have been falling in the US, with last summer's 0.75 percentage point hikes dropping to 0.5 percentage points by Christma...