Fed’s Powell forecasts six more hikes in 2022

The US Federal Reserve chair Jerome Powell said that he expects six more rate hikes in 2022 and inflation rate to reach the peak during the second half of the current year.

He added that there is uncertainty on the Russian/Ukrainian war.

After the Fed hiked rate 25 bps to 0.50% for the first time since 2018, Powell commented that he believes the economy can handle multiple rate hikes without slipping into recession.

The central bank estimated that the rate will rise to 1.75% by this year-end from 2% previously estimated, while it sees the inflation at 4.3% in 2022, 2.7% in 2023 and ay 2.3% in 2024.