Fed's Powell: High inflation poses a threat to job market

WASHINGTON (AP) — Warning that high inflation could make it harder to restore the job market to full health, Federal Reserve Chair Jerome Powell said Tuesday that the Fed will raise interest rates faster than it now plans if needed to stem surging prices.With America’s households squeezed by higher costs for food, gas, rent, autos and many other items, the Fed is under pressure to rein in inflation by raising rates to slow borrowing and spending. At the same time, the economy has recovered enough that the Fed’s ultra-low-interest rate policies are no longer needed.“If we have to raise interest rates more over time, we will,” Powell said during a hearing of the Senate Banking Committee, which is considering his nomination for a second four-year term.The stark challenge for Powell if he is confirmed for a new term, as expected, was underscored by the questions he faced Tuesday from both Democratic and Republican senators. Fed rate increases usually boost borrowing costs on many consumer and business loans and have the effect of slowing the economy.But Powell argued that rising inflation, if it persists, also poses a threat the Fed’s goal of getting nearly everyone wants a job back to work.