{"id":2011828,"date":"2023-08-25T10:52:04","date_gmt":"2023-08-25T14:52:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-warns-fed-may-continue-to-raise-interest-rates-as-inflation-is-too-high\/"},"modified":"2023-08-25T10:56:24","modified_gmt":"2023-08-25T14:56:24","slug":"powell-warns-fed-may-continue-to-raise-interest-rates-as-inflation-is-too-high","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-warns-fed-may-continue-to-raise-interest-rates-as-inflation-is-too-high\/","title":{"rendered":"Powell cautions Fed may raise rates further due to excessive inflation."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><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%2Fpowell-warns-fed-may-continue-to-raise-interest-rates-as-inflation-is-too-high%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=2011828&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 data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>Federal Reserve Chair \u200dWarns of Continued Inflation\u200b Risks<\/h2>\n<p>Federal \u200bReserve Chair Jerome Powell raised\u2064 the possibility of additional monetary policy conditions in\u200d the central bank&#8217;s \u2064fight against \u200cinflation, warning that\u2062 prices remain too high.<\/p>\n<p>Speaking\u200d at the annual Jackson Hole economic symposium on Aug. 25, Mr. Powell reiterated that the \u200binstitution is prepared to\u200c keep <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-10-year-treasury-yield-surges-to-highest-level-since-2007-after-fed-minutes\/\" title=\"US 10-Year Treasury Yield Soars to Pre-2007 Highs Post Fed Minutes\">raising interest \u2062rates<\/a> if\u2064 appropriate. Even without any extra rate hikes,\u200d the Fed plans to hold the benchmark fed\u200c funds rate at a restrictive level\u2062 until policymakers are\u200b confident that\u2064 inflation is trending downward to the Fed&#8217;s 2 percent target rate.<\/p>\n<p>But\u200b while inflation is coming\u200b down from its\u2064 peak in June \u200c2022, Mr. Powell\u2063 believes it \u200dis too early to declare victory.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/federal-reserve-policymakers-consider-additional-interest-rate-hikes-5450900\">Federal Reserve Policymakers Consider Additional Interest-Rate Hikes<\/a><br \/>\n        <span class=\"text-comp-caption\">8\/8\/2023<\/span>\n      <\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/federal-reserve-raises-interest-rates-to-highest-level-in-22-years-5424646\">Fed Raises Interest\u200d Rates to\u2064 Highest Level in 22 Years<\/a><br \/>\n        <span class=\"text-comp-caption\">7\/26\/2023<\/span>\n      <\/li>\n<\/ul>\n<\/blockquote>\n<p>&#8220;The lower monthly readings for\u200b core inflation in June and July were welcome, but two months of \u2062good data\u200c are only the beginning of what it will take to build confidence that inflation is moving down sustainably\u200b toward our goal,&#8221; Mr. Powell said in his prepared remarks.<\/p>\n<p>The Fed Chair repeated\u2063 what the July Federal Open Market\u2063 Committee (FOMC) \u2062policy minutes stated: Officials are \u2062aware of the risk of overtightening \u200bmonetary policy.<\/p>\n<p>\u201cDoing too little could allow above-target \u2063inflation to become entrenched \u2064and ultimately require monetary policy to wring more persistent inflation \u2063from the economy at a high \u2063cost to employment. Doing too\u2063 much could also do unnecessary harm to the economy,&#8221; he stated.<\/p>\n<p>\u201cAs is often\u200b the case, we are navigating by the stars under cloudy skies,&#8221;\u2064 he said.<\/p>\n<p>The Fed will \u200cneed to &#8220;proceed carefully&#8221; when\u200b assessing incoming economic data and\u2062 the evolving outlook and risks, Mr. \u2063Powell \u200badded.<\/p>\n<p>It will be a delicate balance for the rate-setting Committee because \u200cthere are signs of slowing economic conditions and renewed price pressures.<\/p>\n<p>According to the Cleveland Fed Bank&#8217;s Inflation Nowcasting model\u200d <a href=\"https:\/\/www.clevelandfed.org\/en\/indicators-and-data\/inflation-nowcasting\" target=\"_blank\" rel=\"noopener\">estimate<\/a>, the \u2062<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/reports-bidens-policies-to-produce-massive-inflation\/\" title=\"Reports: Biden\u2019s policies to produce massive inflation\">annual inflation rate<\/a> is expected to rise for the second consecutive\u2062 month\u200c to \u200d3.8 percent. The\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-on-consumer-price-index-showing-prices-rising-at-fastest-pace-since-2008-a-good-monthly-report\/\" title=\"Biden On Consumer Price Index Showing Prices Rising At Fastest Pace Since 2008: \u2018A Good Monthly Report\u2019\">core consumer price index<\/a>\u2063 (CPI), which omits the volatile energy and food sectors, is anticipated to ease to \u200b4.5 percent.<\/p>\n<p>Since the Fed launched its quantitative \u2064tightening cycle in March 2022, the FOMC has pulled the trigger on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-warns-fed-may-continue-to-raise-interest-rates-as-inflation-is-too-high\/\" title=\"Powell cautions Fed may raise rates further due to excessive inflation.\">11 rate hikes totaling 500 basis points<\/a>.<\/p>\n<p>There was little reaction in \u200cthe U.S. financial markets, \u2064with the leading benchmark indexes flat in early trading.<\/p>\n<p>The U.S. Treasury market was \u2063mostly up at \u200dthe end of the \u2063trading week, with the\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-sees-us-slowdown-as-economy-faces-upside-risks-to-inflation-fomc-minutes\/\" title=\"Fed sees US slowdown, economy faces inflation risks: FOMC minutes.\">benchmark 10-year yield\u2063 adding<\/a> one basis point to \u20634.245 percent. The 2-year yield picked up 5 basis points to 5.069 percent.<\/p>\n<h2>What Others\u2063 Are Saying<\/h2>\n<p>Heading into \u2063Mr. Powell&#8217;s speech,\u2063 other \u2062U.S. central bank officials have\u200d weighed\u2062 in on the monetary policy debate.<\/p>\n<p>Philadelphia Fed Bank President Patrick Harker thinks that the institution has &#8220;probably done enough&#8221; to combat rampant inflation, <a href=\"https:\/\/www.cnbc.com\/video\/2023\/08\/24\/philadelphia-fed-president-patrick-harker-we-should-keep-restrictive-stance-for-a-while.html\" target=\"_blank\" rel=\"noopener\">telling<\/a> CNBC from Jackson\u2062 Hole that he would prefer\u2064 to &#8220;keep rates high for a while.&#8221;<\/p>\n<p>\u201cI \u200dam in\u2062 the camp of, let the \u2063restrictive stance work for\u2062 a while. That should bring inflation down,\u201d Mr. Harker told the business news network.<\/p>\n<p>He has presented this position before, \u2064saying at \u200ca\u2063 recent event that the Fed should leave the policy rate where it is and determine how much 22-year-high\u2064 interest rates are traveling throughout the economy.<\/p>\n<p>Minneapolis Fed \u200bBank President Neel Kashkari is \u200bnot\u200d willing to declare mission accomplished on the inflation front just yet.<\/p>\n<p>Speaking at\u200d the APi\u200d Group&#8217;s Global Controllers Conference earlier \u2062this month, Mr. Kashkari <a href=\"https:\/\/www.theepochtimes.com\/article\/federal-reserve-sees-us-slowdown-as-economy-faces-upside-risks-to-inflation-fomc-minutes-5469632\" target=\"_blank\" rel=\"noopener\">acknowledged<\/a> \u200d that there could still be additional tightening ahead because \u2064inflation is &#8220;still too high.&#8221;<\/p>\n<p>&#8220;The question on\u2064 my mind is, have we done enough to actually get inflation all \u200bthe way back down to our 2 percent target? Or \u200bdo\u2062 we \u2064have to do more?&#8221; he said. \u201cAre we done raising rates? I\u2019m not \u200dready to say that we\u2019re done.&#8221;<\/p>\n<p>Writing in a Washington Post <a href=\"https:\/\/www.washingtonpost.com\/opinions\/2023\/08\/24\/federal-reserve-jerome-powell-inflation\/\" target=\"_blank\" rel=\"noopener\">op-ed<\/a> on Au<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chair Jerome Powell discussed the potential for more monetary policy measures to combat inflation, emphasizing that prices are still elevated. During the Jackson Hole economic symposium, he reaffirmed the central bank&#8217;s readiness to increase interest rates as needed. Despite no immediate actions, Powell highlighted the possibility of additional measures.<\/p>\n","protected":false},"author":278,"featured_media":2011829,"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":[543],"tags":[],"class_list":["post-2011828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"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\/2011828","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\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2011828"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011828\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2011829"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2011828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2011828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2011828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}