Inflation Is Still Too High, Powell Warns – By Michael Rainey (The Fiscal Times) / Aug 26, 2023
Federal Reserve Chair Jay Powell made it clear Friday that the central bank’s battle against inflation is not over and warned that additional interest rate hikes could be on the horizon, if conditions warrant.
“Although inflation has moved down from its peak—a welcome development—it remains too high,” he said in remarks delivered at the annual Fed meeting in Jackson Hole, Wyoming. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
While the economy has slowed, Powell said Fed officials “are attentive to signs that the economy may not be cooling as expected.” Growth this year has been higher than expected, with consumer spending remaining robust and housing showing signs of picking up. “Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said.
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