(Bloomberg) –Federal Reserve Chair Jerome Powell reinforced his message that the U.S. central bank would keep inflation in check and said for the second time in two days that officials should consider speeding up how quickly they withdraw policy support.
“We’ve seen inflation be more persistent. We’ve seen the factors that are causing higher inflation to be more persistent,” Powell told the House Financial Services Committee on Wednesday. “Policy has adapted to that and will continue to adapt.”
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The Chicago Fed president said there are signs that investment in the technology is outpacing economic capacity, creating a frothy market environment and possibly one that the Fed will tamp down with more rate hikes.
The Federal Open Market Committee's voting history heading into previous elections might shed light on how it approaches this week's decision.
There is broad agreement that asset size alone is not the best way to measure a bank's systemic footprint. But getting equally broad consensus on another, better approach could be difficult.
Traders priced in a roughly coin-toss probability that the U.S. central bank boosts rates at its October meeting after consumer prices advanced at the fastest pace in five months.
The consumer price index increased 3.7% in September, potentially dashing market hopes that the Federal Reserve might delay raising interest rates later this month.
