But a few big buyers in credit markets are calling Fed’s bluff
US Federal Reserve Chair Jerome Powell on Wednesday told lawmakers that the fight against inflation still “has a long way to go” and despite a recent pause in rate hikes officials were in agreement borrowing costs would likely still need to move higher.
“Inflation has moderated somewhat since the middle of last year,” Powell said in remarks to the House Financial Services Committee in one of his regularly scheduled twice-yearly monetary policy updates to Congress. “Nonetheless, inflation pressures continue to run high, and the process of getting inflation back down to 2 per cent has a long way to go.
