August 25th, Washington According to a media source, Jerome Powell, the chairman of the Federal Reserve, warned on Friday that more interest rate increases are still a possibility and that they may stay high for longer than anticipated.
Powell said the Fed would closely monitor economic growth and the status of the labour market while setting policy in a much anticipated address at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming, CNN reported.
Powell stated, “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 towards our objective,” CNN reported. “Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell added.
What to anticipate from monetary policy in the next months is often hinted at in the Fed chief’s annual address at the symposium, which has grown into a significant event in the world of central banking.
Following a pause in June, the Fed increased its benchmark lending rate by a quarter point in July to a range of 5.25–5.5%, the highest level in 22 years. The Fed’s July meeting minutes revealed that policymakers were worried that the economy’s unexpected strength would put pressure on prices to rise, and they suggested more rate rises if required, according to CNN.
Authorities have said in the past
