The Federal Reserve will likely raise interest rates to a higher peak than previously thought and may consider ratcheting back up the pace of hikes in an effort to cool down a resilient economy, chair Jerome Powell told Congress on Tuesday.
Why it matters: Powell's remarks underscore the importance of the incoming round of data on the labor market, inflation and consumer spending. If it suggests the economic activity is heating up, the Fed looks prepared to return to a more rapid pace of rate increases and push rates higher than expected.
