Federal Reserve Warns , No End in Sight for , Inflation and Economic Pain.
On August 26, Federal Reserve Chair
Jerome Powell said that inflation in the United States
is likely to continue "for some time." .
On August 26, Federal Reserve Chair
Jerome Powell said that inflation in the United States
is likely to continue "for some time." .
NBC reports that Powell warned of slower
growth, a weaker job market and continued
hardship for households and small businesses.
While higher interest rates, slower growth,
and softer labor market conditions will bring
down inflation, they will also bring some
pain to households and businesses, Jerome Powell, Federal Reserve Chair, via NBC.
While higher interest rates, slower growth,
and softer labor market conditions will bring
down inflation, they will also bring some
pain to households and businesses, Jerome Powell, Federal Reserve Chair, via NBC.
These are the unfortunate costs of reducing
inflation. But a failure to restore price
stability would mean far greater pain, Jerome Powell, Federal Reserve Chair, via NBC.
According to Powell,
people should not expect
the Fed to reverse its
monetary policy until the
inflation problem is solved.
Some policymakers have even indicated that a recession would not be enough to reverse direction if inflation hasn't reached the Fed's 2% target.
The historical record cautions strongly
against prematurely loosening policy.
We must keep at it until the job is done. , Jerome Powell, Federal Reserve Chair, via NBC.
The historical record cautions strongly
against prematurely loosening policy.
We must keep at it until the job is done. , Jerome Powell, Federal Reserve Chair, via NBC.
NBC reports that Ryan Detrick, chief market strategist at Carson Group, said the statement from the Fed , “took investors by surprise and hammers home how serious they are about raising rates to fight inflation.".
NBC reports that Ryan Detrick, chief market strategist at Carson Group, said the statement from the Fed , “took investors by surprise and hammers home how serious they are about raising rates to fight inflation.".
Atlanta Fed President Raphael Bostic underscored a similar message while appearing on Bloomberg TV.
Bostic suggested that once the central
bank's policy rate is 100 to 125 points higher,
"we should stay there for a long time."