Powell says higher rates needed to curb inflation

Fed officials disappointed at pace of slowing inflation target a period of below-trend growth

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Federal Reserve Chair Jerome Powell said policymakers expect interest rates will need to move higher to reduce US growth to below its long-term trend and contain price pressures, with the timing of additional increases based on incoming data.

"My colleagues and I understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal," Powell said Wednesday in prepared remarks to be delivered to the House Financial Services Committee. "We will continue to make our decisions meeting by meeting, based on the totality of incoming data and their implications for the outlook for economic activity and inflation, as well as the balance of risks."