{"id":2011806,"date":"2023-08-25T10:39:02","date_gmt":"2023-08-25T14:39:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-says-inflation-remains-too-high-signals-more-rate-hikes\/"},"modified":"2023-08-25T10:41:59","modified_gmt":"2023-08-25T14:41:59","slug":"fed-chair-says-inflation-remains-too-high-signals-more-rate-hikes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-says-inflation-remains-too-high-signals-more-rate-hikes\/","title":{"rendered":"Fed Chair warns of high inflation, hints at further rate increases."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-chair-says-inflation-remains-too-high-signals-more-rate-hikes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2011806&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div dir=\"auto\" data-qa-component=\"collapsable-content\" data-rc-highlight=\"story\">\n<h2>The \u200bU.S. Federal Reserve&#8217;s Battle \u200cwith Inflation<\/h2>\n<p>The U.S. Federal Reserve may need to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morgan-stanley-threat-of-high-inflation-is-real\/\" title=\"Morgan Stanley: Threat of high inflation is real\">raise interest rates<\/a> further to ensure inflation\u2064 is contained, Federal Reserve chair \u200dJerome<span data-qa-component=\"highlight-text\"> Powell <\/span>said on Friday in remarks\u200d that \u200dbalanced declines in the pace of price increases over the past year with the surprising overperformance of the \u2064U.S. economy.<\/p>\n<p><span data-qa-component=\"highlight-text\">Powell\u2064 <\/span>said Fed policymakers would &#8220;proceed carefully as we decide whether to\u2064 tighten further,&#8221; but also made clear\u2064 that the central bank has \u2062not yet concluded that its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/key-inflation-gauge-posts-fastest-annual-price-gain-in-30-years\/\" title=\"Key Inflation Gauge Posts Fastest Annual Price Gain In 30 Years\">benchmark interest rate<\/a> is high enough to be sure that\u200d inflation returns to the 2 percent\u2064 target.<\/p>\n<p>&#8220;It is the Fed\u2019s job \u200cto bring\u200d inflation down to \u2063our 2 percent goal, and we\u200b will do so,&#8221;<span data-qa-component=\"highlight-text\"> Powell <\/span>said. &#8220;We have tightened policy significantly over \u200dthe past year. Although inflation\u2064 has moved down from its peak\u2014a welcome development\u2014it \u2062remains \u200btoo high. \u200dWe are prepared to raise rates further if appropriate, and intend \u2064to hold policy at a restrictive level until we \u2062are confident that \u200cinflation \u200cis \u2062moving\u200c sustainably down toward our objective.&#8221;<\/p>\n<p>In \u2062that context, recent\u200d data has raised \u2063a \u2064new concern, he said.<\/p>\n<p>&#8220;We are attentive to signs that the \u2063economy may not be\u200d cooling as expected,&#8221; with consumer\u200b spending &#8220;especially robust&#8221; and the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-says-inflation-remains-too-high-signals-more-rate-hikes\/\" title=\"Fed Chair warns of high inflation, hints at further rate increases.\">housing sector\u200c possibly rebounding<\/a>,<span data-qa-component=\"highlight-text\"> Powell <\/span>said.<\/p>\n<p>The economy continues to grow above trend,<span data-qa-component=\"highlight-text\"> Powell <\/span>said, and if that continues &#8220;it could put further progress\u2064 on inflation at \u2062risk and could warrant further tightening of \u200bmonetary policy.&#8221;<\/p>\n<p>His remarks showed the Fed wrestling with conflicting signals \u200bfrom an economy where\u200d inflation has by some readings slowed a lot without much cost\u2064 to the \u200deconomy\u2014a good outcome, but one \u2063that has\u2062 raised the possibility that Fed policy is not restrictive \u2064enough to complete the job.<\/p>\n<p>It was difficult, he said, to know\u200b with \u2062precision the degree \u200bto \u2062which \u200dthe Fed&#8217;s current \u20635.25 percent to 5.5 percent benchmark interest \u200crate \u200bhad \u2062cleared the &#8220;neutral&#8221; rate of \u2063interest needed to slow \u200dthe economy, and therefore hard to assess just \u2063where policy stands.<\/p>\n<p><span data-qa-component=\"highlight-text\">Powell <\/span>repeated what has become \u2064a standard \u200dFed diagnosis\u2062 of inflation progress\u2014with a pandemic-era \u2064jump \u2062in\u2062 goods inflation easing and a decline in\u2064 housing inflation &#8220;in the pipeline,&#8221; but \u200dconcern that continued consumer spending on \u2062a broad array \u2062of services and\u2063 a \u200btight\u2062 labor market may\u2064 make a return to \u20632 percent difficult.<\/p>\n<p>A \u200crecent decline in measures of underlying inflation, stripped of food and energy prices,\u200c &#8220;were \u2064welcome, but two months \u2063of good data are only the beginning of\u2064 what it will take\u2062 to build \u2064confidence that inflation is moving down sustainably,&#8221;<span data-qa-component=\"highlight-text\"> Powell <\/span>said.<\/p>\n<p>&#8220;Given the size&#8221; of \u200dthe\u2064 broader services sector, excluding housing, &#8220;some further \u2063progress will be essential,&#8221; the Fed chief said, and it will likely require\u200b an economic slowdown to deliver it.<\/p>\n<p>&#8220;Restrictive \u200bmonetary policy will likely\u200b play an\u200b <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/password-manager-lastpass-reports-breach-says-no-credentials-stolen\/\" title=\"Password Manager LastPass Reports Breach, Says No Credentials Stolen\">increasingly important role<\/a>. Getting inflation sustainably back down to 2% is expected to require a period of below-trend \u2062economic growth as well as\u200b some softening \u200din \u200clabor \u200dmarket conditions,&#8221;<span data-qa-component=\"highlight-text\"> \u200b Powell <\/span>said.<\/p>\n<p>&#8220;Two percent is and\u200d will remain our inflation target,&#8221;<span data-qa-component=\"highlight-text\"> Powell <\/span>said. &#8220;We are committed to achieving and sustaining a stance of monetary \u200dpolicy that is\u200c sufficiently restrictive\u2063 to bring \u2062inflation\u2063 down to that level over time.&#8221;<\/p>\n<p>(Reporting by Howard Schneider; editing by\u200d Andrea\u2063 Ricci)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>to raise interest rates further.&#8221; He emphasized the need to maintain a balance between controlling inflation and supporting the strong U.S. economy. Powell&#8217;s remarks suggest that the Federal Reserve is considering future rate hikes but will approach the decision cautiously.<\/p>\n","protected":false},"author":66,"featured_media":2011807,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2011806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2011806"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2011807"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2011806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2011806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2011806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}