“It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting,” Powell said in a speech to the Brookings Institution think tank in Washington.
While the Fed chief did not indicate his estimated “terminal rate,” Powell said it is likely to be “somewhat higher” than the 4.6% indicated by policymakers in their September projections. He said curing inflation “will require holding policy at a restrictive level for some time,” a comment that appeared to lean against market expectations the U.S. central bank could begin cutting rates next year as the economy slows.
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