JACKSON HOLE, WYOMING: The Federal Reserve may want to boost curiosity rates additional to make sure inflation is contained, Fed Chair Jerome Powell stated on Friday, nodding each to easing worth pressures and the shocking overperformance of the US economic system.
Powell stated Fed policymakers would “proceed carefully as we decide whether to tighten further,” but additionally made clear that the central financial institution has not but concluded that its benchmark rate of interest is excessive sufficient to make sure that inflation returns to the two% goal.
“It is the Fed’s job to bring inflation down to our 2% goal, and we will do so,” Powell stated in a keynote deal with to the Jackson Hole Eco nomic Policy Symposium. “We have tightened policy significantly over the past year. Although inflation has moved down from its peak — a welcome development — it remains too high. 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.”
In that context, latest da ta has raised a brand new concern, he stated. “We are attentive to signs that the economy may not be cooling as expected,” with client spending “especially robust” and the housing sector presumably rebounding, Powell stated. The economic system continues to develop above development, he added, and if that continues “it could put further progress on inflation at risk and could warrant further tightening of monetary policy.”
Powell stated Fed policymakers would “proceed carefully as we decide whether to tighten further,” but additionally made clear that the central financial institution has not but concluded that its benchmark rate of interest is excessive sufficient to make sure that inflation returns to the two% goal.
“It is the Fed’s job to bring inflation down to our 2% goal, and we will do so,” Powell stated in a keynote deal with to the Jackson Hole Eco nomic Policy Symposium. “We have tightened policy significantly over the past year. Although inflation has moved down from its peak — a welcome development — it remains too high. 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.”
In that context, latest da ta has raised a brand new concern, he stated. “We are attentive to signs that the economy may not be cooling as expected,” with client spending “especially robust” and the housing sector presumably rebounding, Powell stated. The economic system continues to develop above development, he added, and if that continues “it could put further progress on inflation at risk and could warrant further tightening of monetary policy.”
