GTCAPITALWEALTH

     Federal Reserve Chairman Jerome Powell testified before Congress today on Capitol Hill. The Fed Chair gave an update to his plans to increase interest rates to fight off inflationary pressures.   

     Chair Powell stated that he has changed the pace and magnitude of potential rate interest increases in the United States.   

     Powell had previously signaled that he was leaning toward a fifty basis point interest rate hike during 2022. However, with reasonable focus on the current situation in Ukraine, the Fed Chair stated that he interested in only a twenty five basis point increase.   

Chair Powell stated that the Federal Reserve continues to keep a watch on global markets as well as worldwide issues that may have an impact on financial markets. The Fed Chair has stated that markets are currently functioning and the Federal Reserve has no need of using its tools to prevent any negative outcomes in the near future.   

     The change to interest rate hike expectations is big news for investors as many investors believedChair Powell to raise rates rapidly to deal with what is seen to be as an inflationary rate that is spiraling out of control. While many investors continue to believe in the possibilities of a need for rapid and large rate hikes in the rest of the year, Powell signals a slowdown in the suggested rate hikes of 50 basis points.