Federal Reserve Chair Jerome Powell said the labor market’s surprising strength underscores why bringing inflation down will take longer and require higher interest rates than many investors have been anticipating. A government report Friday that showed hiring accelerated in January was “certainly strong—stronger than anyone I know expected,” Mr. Powell said Tuesday during a moderated discussion before the Economic Club of Washington, D.C. “It kind of shows you why we think this will be a process that takes a significant period of time.” Mr. Powell didn’t say whether advance knowledge about Friday’s report would have changed the outcome of officials’ decision earlier in the week to slow rate increases for a second time in as many meetings. They approved lifting the benchmark federal-funds rate by a quarter-percentage point to a range between 4.5% and 4.75%. They raised it by a half point in December and 0.75 point in November.
Source: Wall Street Journal
