Interest rate hikes should be expected across North America after the US Federal Reserve and the Bank of Canada warned about the need to combat mounting inflationary pressures. Jerome Powell, head of the US institution, said the organization would do whatever is necessary to put the brakes on consumer prices, according to Bloomberg. He added that interest rate hikes will be expected in March, and that higher-than-projected rate spikes remain a possibility as well. Powell pointed out that inflation might remain high for some time, and that it could upwardly move even more, explaining that monetary policy must be ready for all these scenarios. In December, the inflation rate hit 7 percent in the world’s largest economy, a 40-year high. North of the US, the Bank of Canada, while maintaining its interest rate at 0.25 percent, is anticipated to introduce an increase soon due to rising inflation. Inflation is set to hover around 5 percent in the first half of this year, but will drop to 3 percent by the end of 2022, the Wall Street Journal reported, citing the central bank. Last month, consumer prices rose by 4.8 percent — the highest since 1991 — in the North American country. Moreover, the euro area is also struggling with record highs inflation, and pressure is piling up on the European Central Bank to act and mitigate these effects. On the other hand, China trimmed its interest rate for the first time in two years to boost its economy which is grappling with COVID-19.