Federal Reserve Chairman Powell announcing increase in interest rates this month

Federal Reserve Chairman Jerome Powell will announce Wednesday that the central bank will begin raising interest rates this month –  in an attempt to curb rising inflation expect to further increase as a result of Russia's invasion of Ukraine.

In prepared testimony to a congressional committee, Powell says the Fed will "need to be nimble" in responding to unexpected changes resulting from the invasion and the resulting sanctions, according to the Associated Press.

The Fed has been expected to raise its benchmark short-term interest rate several times in 2022, starting at its  March 15-16 meeting. However, in Powell's testimony before the House Financial Services Committee, he provided little additional guidance about how quickly the Fed would act.

A rate hike next month would be the first since 2018, as the Fed tries to balance imposing one high enough to slow record-high inflation, while also maintaining employment and economic expansion, the wire service also reports.