Fed looks to hike interest rates half a point as inflation soars

The Central Bank may increase the federal funds rate by .5% at the meeting in May as inflation soars, Federal Reserve Chairman Jerome Powell signaled Thursday. The Fed raised its rate by .25% in March, a move that some economists have criticized as not aggressive enough as inflation hit 8.5% last month – the fastest annual increase in 40 years.

"I would say that 50 basis points will be on the table for the May meeting," Powell said Thursday during an International Monetary Fund discussion on the global economy outlook as finance officials met this week in Washington.

Powell said that the decision is made meeting by meeting. The next meeting takes place May 3-4.