Jerome Powell backs 25 bps March rate hike

NEW YORK - Federal Reserve chair Jerome Powell said he is inclined to support a 25 basis point rate increase at the March policy meeting but said the central bank is prepared to move more aggressively later if inflation does not abate as expected.

"I'm inclined to propose and support a 25 basis point rate hike," Powell testified before Congress on Wednesday about the Fed's upcoming March meeting.

He added that the central bank is "prepared to move more aggressively by raising the federal funds rate by more than 25 basis points" at one or more meetings if inflation does not come down later this year as expected.