KEY POINTS
  • Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected.
  • "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," the central bank leader said in prepared remarks for appearances this week on Capitol Hill.
  • Powell said the current trend shows that the Fed's inflation-fighting job is not over.

Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected.

Citing data earlier this year showing that inflation has reversed the deceleration it showed in late 2022, the central bank leader warned of tighter monetary policy ahead to slow a growing economy.