Powell warns of more interest rate hikes as inflation remains high

Federal Reserve chair Jerome Powell on Friday warned that inflation was still far too high, and suggested the central bank may need to raise interest rates further in coming months.

Why it matters: Despite recent data that shows inflation receding, the Fed is not declaring victory with signs that price pressures could re-emerge.

What they're saying: "Although inflation has moved down from its peak—a welcome development—it remains too high," Powell will tell the Jackson Hole Symposium in a highly-anticipated speech. The annual gathering of central bankers and economists is hosted by the Kansas City Fed.

"We are prepared to raise 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."