Fed allays fears over int rate hike; critics doubt

NEW YORK: Federal Reserve Chairman Jerome Powell on Wednesday (Thursday in Manila) once again tried to assuage fears of rising US inflation, even while a majority of central bank officials now believe interest rates will increase in 2023.

While widespread vaccinations have allowed the United States to rebound faster than previously expected from the Covid-19 pandemic downturn, the Fed's policy-setting Federal Open Market Committee (FOMC) cautioned that "risks to the economic outlook remain" in a statement following its two-day meeting.