Against the backdrop of higher volatility in the stock markets (much if it caused by inflation fears), New Federal Reserve Chair Powell sees an economy with strong momentum but still no evidence of overheating.
So what does that mean for interest rates going forward? Probably more of the same, with continued gradual rate increases from the Fed. Current Fed Fund futures place a near certainty the Fed will raise rates again in March but markets are less certain where we’ll end the year. Three rates hikes in total remains the most probable outcome.