Fed Chair Jerome Powell Says Inflation 'Remains Too High' in Annual Address
Summary from the AllSides News Team
Federal Reserve Chairman Jerome Powell indicated that more interest rate hikes are on the horizon as the government continues to fight high inflation.
Key Quote: "Although inflation has moved down from its peak — a welcome development — it remains too high," Powell said Friday in his address at the Kansas City Fed’s annual retreat in Jackson Hole, Wyoming. "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."
For Context: The Federal Reserve's target inflation rate is 2%; last month, the annual rate was 3.2%. Another rate hike would be the 12th in the last 18 months. Mortgage rates, which typically move in the same direction as federal interest rates, are at a two-decade high.
How the Media Covered it: Powell's comments were a top story from finance-focused sources across the spectrum Friday. Most sources suggested that more interest rate hikes are imminent. Axios (Lean Left bias) said that "Despite recent data that shows inflation receding, the Fed is not declaring victory with signs that price pressures could re-emerge." Fox Business (Lean Right bias) said Powell "struck a hawkish tone" in his speech.
Featured Coverage of this Story
From the Right
Fed's Powell signals inflation fight not over, more rate hikes possible
Federal Reserve Chair Jerome Powell on Friday struck a hawkish tone during the annual central bank gathering in Wyoming: Inflation remains too high, and additional interest rate hikes may be warranted.
In his hotly anticipated speech at the Kansas Federal Reserve's Jackson Hole symposium, Powell noted that while inflation has fallen considerably in recent months, it remains far from acceptable levels.
"Although inflation has moved down from its peak—a welcome development—it remains too high," he said. "We are prepared to raise rates further if appropriate, and intend to hold policy at a...
From the Center
Fed Chair Powell calls inflation ‘too high’ and warns that ‘we are prepared to raise rates further’
Federal Reserve Chair Jerome Powell on Friday called for more vigilance in the fight against inflation, warning that additional interest rate increases could be yet to come.
While acknowledging that progress has been made, the central bank leader said inflation is still above where policymakers feel comfortable. He noted that the Fed will remain flexible as it contemplates further moves, but gave little indication that it’s ready to start easing up anytime soon.
“Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell said in...
From the Left
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...
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