By Nick Timiraos

Federal Reserve Chair Jerome Powell said the central bank was likely to raise interest rates in coming months after officials held them steady last week to study the effects of their previous, rapid increases to combat inflation.

"Nearly all [officials] expect that it will be appropriate to raise interest rates somewhat further by the end of the year," Powell said in testimony prepared for deliver to a congressional committee Wednesday. "But at last week's meeting, considering how far and how fast we have moved, we judged it prudent to hold the target range steady to allow the committee to assess additional information and its implications for monetary policy."