Fed's Powell says it's 'premature' to pause interest rate hikes: 'A way to go'

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Fed's Powell says it's 'premature' to pause interest rate hikes: 'A way to go'
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Federal Reserve Chairman Jerome Powell signaled on Wednesday that more interest rate hikes are coming as the U.S. central bank struggles to get inflation under control.

FOX Business' Edward Lawrence asks Fed Chair Jerome Powell how much of a headwind government spending is to the Fed's inflation target and its plans for future rate hikes.Speaking at a press conference after the– during which policymakers delivered the fourth straight 75-basis-point rate increase – Powell struck a surprisingly hawkish tone.

Powell's comments came in response to a new, eye-catching sentence in the Fed's updated statement that Wall Street interpreted to mean the central bank was considering slowing its aggressive rate hike path in coming meetings. "The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time," the statement said.

But Powell indicated that the Fed will raise rates even higher than it previously projected as it struggles to wrestle stubbornly high inflation under control.

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