Powell signals Fed will hike rates this month despite uncertainty over Ukraine

Federal Reserve Chairman Jerome Powell said that the central bank plans to raise interest rates for the first time in years this month despite the uncertainty about the devolving situation in Ukraine.

During a hearing before the House Financial Services Committee on Wednesday, Powell faced questions about how Russia’s invasion of Ukraine would affect the rate and scale of interest rate hikes this year. Powell said that despite the war, raising the federal funds rate is crucial as inflation is running red-hot.