‘We need to act now’: Fed Chairman Powell vows to continue aggressive inflation fight

CNN
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At Thursday’s think tank meeting, Federal Reserve Chairman Jerome Powell reiterated his pledge to maintain the central bank’s aggressive anti-inflation policy line.

“The Federal Reserve has a responsibility for price stability, and it accepts it,” he said at the Kate Institute’s 40th Annual Monetary Conference. “We need to act frankly and strongly now.”

as he said in a short uncharacteristic speech at the Fed’s annual Jackson Hole symposium last month.Powell reaffirmed his commitment to a hawkish policy stance. The US Federal Reserve (Fed) chairman is trying to soften consumer and business expectations that prices will continue to rise, leading to changes in spending, income and investment habits that will be difficult to undo. There is a possibility.

Powell’s concerns that people could become accustomed to expecting inflation were echoed by Federal Reserve Vice Chairman Lael Brainard in a speech at a banking policy conference in New York on Wednesday. Repeated. “It is particularly important to prevent the risk that households and businesses will start to expect inflation to remain above 2% for the long term,” he said.

Investors are overwhelmingly expecting a 75 basis point rate hike at the Fed’s policy meeting later this month.

This story is a work in progress and will be updated.