Powell says Fed will hike further and faster if necessary

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Chair Jerome Powell says the Federal Reserve would raise its benchmark short-term interest rate faster than expected, and high enough to restrain growth and hiring. He says this will come about if the Fed decides this would be necessary to slow rampaging inflation. Powell’s message was more hawkish than his comments were after last week’s Fed meeting, when officials raised their key rate a quarter-point from near zero to a range of 0.25% to 0.5%. His remarks caused a sharp drop in the stock market with its implication that potentially much higher rates could be on the way for mortgages, auto loans, credit cards and other consumer and business borrowing. U.S. stocks later recovered and ended with small losses.