Powell: Fed to keep hiking rates until it controls inflation

WASHINGTON (AP) — Chair Jerome Powell on Tuesday underscored the Federal Reserve's determination to keep raising interest rates until it has brought inflation under control — a high-stakes effort that carries the risk of causing an eventual recession.

The Fed's increases in its benchmark short-term rate typically lead, in turn, to higher borrowing costs for consumers and businesses, including for mortgages, auto loans and credit cards. The economy usually slows as a result.

“What we need to see is inflation coming down in a clear and convincing way,” Powell said in remarks to a Wall Street Journal conference. “And we’re going to keep pushing until we see that.”

Powell's remarks Tuesday followed other statements he has made that have made clear that the Fed is implementing a series of rate hikes that could amount to the fastest tightening of credit in more than 30 years.

Last week, the Fed raised its key rate by a half-point — double the usual increase — for the first time since 2000, to a range of 0.75% to 1%.