The Fed Reserve believes it needs to tame inflation even more

U.S. Federal Reserve Chair Jerome Powell has warned interest rates could move higher than previously expected.

After seeing the data, Powell believes the Fed needs to do more to tame inflation.

This could see larger rate increases than the quarter-percent ones officials had used recently.

“As I mentioned, the latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell told a Senate banking committee.

“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.

“Although inflation has been moderating in recent months, the process of getting inflation back down to 2% has a long way to go and is likely to be bumpy.”

The White also believes the path the Fed is taking is the right one, as inflation is on a trajectory to stabilise and drop.

“Our team has been very clear – the recent jobs data and economic data shows we are on the right track,” White House Press Secretary Karine Jean-Pierre affirmed.

Powell also made remarks about increasing the U.S.’ debt ceiling beyond $31 trillion.

“At the end of the day, there is only one solution to this problem and that is Congress,” he added. “Congress really needs to raise the debt ceiling. That’s the only way out.”