Day: August 25, 2023💾

Federal Reserve Chair Jerome Powell said on Friday inflation is still too high, and he warned that restoring price stability will likely require an extended period of elevated interest rates.

Speaking to a gathering of economists and central bankers in Jackson Hole, Wyo., Powell said it's encouraging that inflation has cooled — from 9.1% last summer to 3.2% last month. Here's where inflation stands today — and why it's raising hope about the economy Economy Here's where inflation stands today — and why it's raising hope about the economy

But Powell stressed some of the improvement could be temporary, and he reiterated the Fed is committed to getting inflation all the way down to their 2% target.

"The process still has a long way to go," Powell said. "We are prepared to raise [interest] rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."

The central bank has already raised its benchmark interest rate from near zero in early 2022 to just over 5.25% today — in the most aggressive series of rate hikes since the early 1980s.