Jerome Powell says Fed is determined to fight inflation: NPR

Federal Reserve Chairman Jerome Powell speaks during a news conference after a Fed policy meeting on July 27 in Washington, DC. Powell warned on Friday that the central bank remains committed to reducing inflation, even if it causes some economic pain.

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Federal Reserve Chairman Jerome Powell speaks during a news conference after a Fed policy meeting on July 27 in Washington, DC. Powell warned on Friday that the central bank remains committed to reducing inflation, even if it causes some economic pain.

Drew Anger / Getty Images

Federal Reserve Chairman Jerome Powell gave a clear indication that the central bank would continue to raise interest rates to fight inflation in his much-anticipated speech in Jackson Hole, Wyoming.

The comments are intended to show that the Fed is committed to fighting inflation, even if it causes an economic slowdown.

“We will continue this until we are confident that the job is done,” Powell said in his speech that lasted less than 10 minutes.

However, Powell acknowledged that higher interest rates could bring economic pain.

“Continuing periods of below-trend growth may be needed to moderate inflation,” he said. It will “bring some pain to households and businesses. These are the unfortunate costs of driving inflation down.”

But Powell said that “failure to restore price stability will mean far more pain.”

The Fed has already raised interest rates by more than 2 percent this year, and is expected to raise rates by either half a percentage point or three-quarters of a percentage point at its next meeting in September.

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