Fed’s Powell Warns ‘Some Pain’ Ahead – By Yuval Rosenberg and Michael Rainey (The Fiscal Times) / Aug 26, 2022
Quite a busy summer Friday! The Justice Department released a heavily redacted version of the affidavit used to get legal authorization to search former President Donald Trump’s Mar-a-Lago estate in Florida. And Federal Reserve Chair Jerome Powell delivered a stark warning that the bank will do what it takes to fight inflation, even if it means a weaker economy and job market.
Here’s what you need to know before you log off for the weekend.
Fed’s Powell Warns ‘Some Pain’ Ahead
Federal Reserve Chair Jerome Powell said Friday that the central bank intends to continue its aggressive battle against inflation and warned that the interest rate hikes intended to bring inflation back toward a 2% target rate will result in “slower growth and softer labor market conditions” that will “bring some pain to households and businesses.”
In comments delivered at the Federal Reserve Bank of Kansas City’s annual economic policy symposium in Jackson Hole, Wyoming, Powell made it clear that the battle against inflation is not over, and that the Fed will use its tools “forcefully” as it tightens the flow of money through the economy. “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell said. “The historical record cautions strongly against prematurely loosening policy.”
CONTINUE > https://www.thefiscaltimes.com/newsletter/20220826-Fed-s-Powell-Warns-Some-Pain-Ahead
