Fed’s Powell Predicts Further ‘Restriction,’ Including Rate Hikes at Consecutive Meetings

Federal Reserve Chair Jerome Powell told a European Central Bank forum that the U.S. economy should expect more monetary policy restrictions to come and that inflation won’t return to its 2 percent target for a couple of more years.
During a panel discussion with his central bank counterparts, Powell said that policy hasn’t been restrictive for a long time. When the institution started its quantitative tightening campaign in March, real (inflation-adjusted) interest rates were negative and only recently touched positive territory.
“We’ve now moved up to where we actually are in restrictive territory, but we haven’t been there very long,” Powell said at the event in Sintra, Portugal, on June 28. “We believe there’s more restriction coming.”…}