Federal Reserve to slow interest rate rises as it tackles 40-year inflation high

Jerome Powell warned there was more ground to cover' and rates would stay higher for an extended period

The Federal Reserve chair, Jerome Powell, indicated the central bank is preparing to slow the pace of interest rate rises as it tackles a 40-year high in inflation. But Powell warned there was more ground to cover" and rates would stay higher for an extended period.

In a speech to the Brookings Institution, Powell said that the Fed may increase its key interest rate by a smaller increment at its December meeting, only a half-point, after four straight three-quarter point hikes.