Fed Chair Powell calls talk of cutting rates ‘premature’ and says more hikes could happen

In a speech delivered on Monday, Federal Reserve Chair Jerome Powell called talk of cutting interest rates “premature” and said that more rate hikes could occur in the future if economic data continue to strengthen. Powell noted that the economy was currently in a “very good place” and that further gradual rate hikes were likely to be appropriate as inflation rises and economic activity remains strong. The Fed chief went on to note that consumer spending and business investment remained strong and that the labor market remained tight and performing well. He also cautioned that there were some potential economic risks, including higher inflation and financial market volatility.