The head of the Federal Reserve says it's "premature" to talk about pausing interest rate hikes. Federal Reserve Chairman Jerome Powell stressed yesterday that "we have a ways to go." In announcing its latest three-quarters of a percentage point increase, the Fed said further bumps would likely be needed to get inflation back to two-percent. on the good side, that means your money in the bank will start earning interest, but on the flip side anything you buy with credit will have higher interest.