Federal Reserve Chair Jerome Powell warned on Friday that bringing inflation to the targeted 2% will take some time and require a sustained period of slower economic growth, APA reports citing Teletrader.
"While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation," Powell noted in a prepared speech delivered at the Jackson Hole conference. Commenting on the labor market, Powell confirmed that demand for workers is far exceeding the supply.
The Fed chair also said that the FOMC's decision on the size of the September rate hike will depend on the incoming data. "Restoring price stability will likely require maintaining a restrictive policy stance for some time," he concluded.
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