But there are fears that they may cause a recession in the process. The Fed’s rate hikes may well defeat inflation in time. Federal Reserve Chairman Jerome Powell speaks Thursday morning in a. Please refresh the page if you do not see a player above at that time. With inflation hovering near a four-decade high - almost 9 percent - Powell will likely stress that the Fed is determined to bring it down to its 2 percent target, no matter what it takes. The stream is slated to start at 9:10 a.m. The Fed chair made clear that he expects rates to remain at levels that should slow the economy “for some time.” Powell’s message may disappoint investors who were hoping for a signal that the Fed might soon moderate its rate increases later this year if inflation were to show further signs of easing.Īfter hiking its key short term rate by three-quarters of a point at each of its past two meetings - part of the Fed’s fastest pace of rate increases since the early 1980s - Powell said the Fed might ease up on that pace “at some point” - suggesting that any such slowing isn’t near. The thing I am worried about is we get tangled up in so legalistic language, the fedspeak, and we really do not get to where we want to be in order to. “But a failure to restore price stability would mean far greater pain.”
The Federal Reserve often referred to as the Fed is the central bank of the United States. “These are the unfortunate costs of reducing inflation,” Powell said in the written version of a high-profile speech he is giving at the Fed’s annual economic symposium in Jackson Hole. Official channel of the Federal Reserve Board of Governors. READ MORE: July retail sales were flat, as customers weather inflation The Fed’s three-quarter-point rate increase exceeds the half-point hike that Chair Jerome Powell had previously suggested was likely to be announced this week. Powell acknowledged that the Fed’s continued tightening of credit will cause pain for many households and businesses as its higher rates further slow the economy and potentially lead to job losses. Watch Powell’s remarks in the player above. JACKSON HOLE, Wyoming (AP) - Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed will likely impose more large interest rate hikes in coming months and is resolutely focused on taming the highest inflation in four decades.
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