Federal Reserve Chair Jerome Powell signaled interest rates will stay high and could rise even further should the economy and inflation fail to cool.
In a hotly anticipated speech Friday at the US central bank’s annual conference in Jackson Hole, Wyoming, Powell stressed that the Fed’s inflation-fighting job isn’t done while noting progress in slowing price gains.
He also said the central bank will proceed “carefully,” leaving room for the Fed to hold rates steady at its next meeting in September, following a July hike to a 22-year high of 5.25% to 5.5%. More broadly, Powell’s speech indicated that policy is increasingly shifting toward managing risks amid substantial uncertainty over the impact of previous hikes and the current path of prices and the labor market.
Source from: Bloomberg