The US Federal Reserve will maintain a restrictive policy stance for some time in order to bring inflation under control, chair Jerome Powell said, even if that results in a period of slower growth and softer labour conditions.
In his speech at the annual Jackson Hole symposium in Wyoming today (26 August), Powell said that restoring price stability will take some time and will require using the central bank's tools "forcefully" to take inflation back to its 2% target. Further 75 basis points hike 'almost a done deal' as US labour figures beat expectations At its most recent meeting in July, the Federal Reserve enacted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25%-2.5%. This is where the federal funds rate is projected to settle in the lo...
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