U.S. Fed hints at returning to bigger rate hikes amid high inflation

The U.S. Federal Reserve may need to return to bigger interest rate hikes if the economy continues to be strong and high inflation persists, Chair Jerome Powell said Tuesday.

“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 a hearing of the Senate’s banking committee.

Powell suggested that the U.S. central bank is still struggling to cool the economy and bring inflation, which is at 40-year highs, back to its long-term goal of 2 percent.

“If the totality of...