Dec 14, 2022
2 MIN

Powell Says Fed Still Has a ‘Ways to Go’ After Half-Point Hike

For CFO's who have debt maturing in 2023, borrowing costs will likely remain elevated longer than most expect. Canadian firms planning to refinance should prudently increase the debt service budget in their cashflow forecasts for at least the next 12 months.

“We still have some ways to go,” Chair Jerome Powell said the Federal Reserve is not close to ending its anti-inflation campaign of interest-rate increases as officials signaled borrowing costs will head higher than investors expect next year.Policymakers projected rates would end next year at 5.1%, according to their median forecast, before being cut to 4.1% in 2024 — a higher level than previously indicated.

Powell Says Fed Still Has a 'Ways to Go" After Half-Point Hike