Fed’s Powell says higher rates may be needed, will move ‘carefully’

By Howard Schneider and Ann Saphir

The Federal Reserve may need to raise interest rates further to ensure inflation is contained, Fed Chair Jerome Powell said on Friday, nodding both to easing price pressures and the surprising over performance of the US economy and promising to proceed “carefully” at upcoming meetings.

Powell said Fed policymakers would “proceed carefully as we decide whether to tighten further,” but also made clear…