Powell to face Senate grilling on Fed rates and inflation

If measures of the U.S. economy keep coming in hot, as they did in January, the Federal Reserve will likely have to raise interest rates even higher than it has already signaled — and keep them there longer — Chair Jerome Powell will likely warn in testimony to Congress on Tuesday. Powell’s first appearance before Congress in nine months coincides with growing signs that the economy remains resilient and inflation still stubbornly high. In the past year, the Fed has raised its benchmark interest rate at the fastest pace in four decades to fight high inflation, to about 4.6%, its highest level in 15 years. But consumer spending, hiring and growth have yet to cool.