Powell says Fed will 'keep pushing rates higher' until inflation is under control

Will go below 'neutral' if needed

US Federal Reserve chair Jay Powell said that the central bank will continue to hike interest rates until it saw “clear and convincing” evidence that inflation was returning to the 2% target.

In a speech yesterday, Powell warned that the Fed would raise interest rates to a level that actively constrains demand if needed. Earlier this month, the Fed raised interest rates by 0.5% for the first time since 2000, while sending a strong signal that hikes of the same size would come in future meetings. US inflation sat at 8.3% in April. "Achieving price stability, restoring price stability, is an unconditional need. Something we have to do because really the economy does not work for workers or for businesses or for anybody without price stability. It is the bedrock of the econom...