Fed Chair Powell says interest rates are 'likely to be higher' than previously anticipated

Current market pricing moved higher following Powell's remarks, to a range of 5.5%-5.75%, according to CME Group data. "The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," Powell said in remarks prepared for two appearances this week on Capitol Hill. Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected. However, others, including Governor Christopher Waller, have expressed concern about the recent inflation data and say tight policy is likely to stay in place. "Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time," Powell said.