Fed Prepared to Raise Rates Further to Combat Inflation: Powell

Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole Symposium, emphasized the potential necessity for the US Federal Reserve to implement additional interest rate hikes in order to effectively manage inflation, as policymakers carefully evaluate indications of diminishing inflation alongside the robust performance of the economy and labor market. At the same time, Powell suggested the Fed could hold rates steady at its next meeting in September, as officials assess the incoming data and the evolving outlook and risks. Powell has also reaffirmed the commitment of the central bank to maintain a monetary policy stance that is appropriately stringent to steer inflation towards the targeted 2 percent, while underscoring policymakers’ cautious approach in determining whether to continue tightening or instead keep the policy rate stable while awaiting more data.