The daily business briefing: February 8, 2023

Powell says the Fed might have to raise rates more if hiring surges again, the U.S. trade deficit reached a record $948.1 billion in 2022, and more

Jerome Powell
(Image credit: Drew Angerer/Getty Images)

1. Powell says hiring surge might force more Fed rate hikes

Federal Reserve Chair Jerome Powell said Tuesday that the central bank might have to raise interest rates higher than currently planned if inflation accelerates again or the labor market shows further strengthening. The remarks came after the January jobs report showed that U.S. employers added 517,000 jobs, shattering expectations. The gains pushed the unemployment rate to a 53-year low of 3.4 percent. "The reality is if we continue to get strong labor market reports or higher inflation reports, it might be the case that we have to raise rates more," Powell said in a speech at the Economic Club of Washington. He said he expects a "significant" drop in inflation this year, but warned that there's still "a long way to go."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us