Economics
Powell Talks Tough, Warning Rates Are Going to Stay High for Some Time
- Fed chair says size of September rate hike hinges on the data
- History warns against prematurely loosening policy: Powell
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Federal Reserve Chair Jerome Powell signaled the US central bank is likely to keep raising interest rates and leave them elevated for a while to stamp out inflation, and he pushed back against any idea that the Fed would soon reverse course.
“Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell said Friday in remarks at the Kansas City Fed’s annual policy forum in Jackson Hole, Wyoming. “The historical record cautions strongly against prematurely loosening policy.”