Fed's Kashkari sticks to 5.4% hike after 'surprising' jobs report

Last week the Federal Reserve raised its policy rate by 25 percentage points to 4.5%-4. % But Powell reiterated expectations that at that point the Fed is considering a 5% to 5 pause. % range is restrictive enough in its fight against inflation, which is more than double the Fed’s 2% target.

However, Friday’s January jobs report upended investors’ expectations of an earlier pause after the economy added more jobs than expected , the unemployment rate fell to 3.4%, which is the highest since 25.