Fed Suggests More Rate Hikes, Economic 'Pain' as Inflation Fight Continues
Summary from the AllSides News Team
Federal Reserve Chairman Jerome Powell said Friday that continued efforts to fight high inflation will "also bring some pain to households and businesses."
Powell's remarks came at the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming. He detailed how the government is moving to combat inflation with "higher interest rates, slower growth, and softer labor market conditions," and how "reducing inflation is likely to require a sustained period of below-trend growth" for the U.S. economy. "These are the unfortunate costs of reducing inflation," Powell said. "But a failure to restore price stability would mean far greater pain."
Inflation slowed last month but remains near a four-decade high, driven in large part by high prices of food and energy. The Federal Reserve has raised interest rates four times since March, and Powell's Friday remarks suggest that more rate hikes await.
News outlets across the political spectrum covered the speech similarly and prominently. Many focused specifically on Powell's remarks about economic pain. Right-rated outlets, such as the New York Post (Lean Right bias), were more likely to use "pain" in their headlines. Headlines from left-rated outlets, such as CNN (Left bias), often focused more on the Fed's "fight" against inflation.
Featured Coverage of this Story
From the Center
Fed's Powell: 'Pain' of tight policy, slow growth needed 'for some time' to beat inflationThe U.S. economy will need tight monetary policy "for some time" before inflation is under control, a fact that means slower growth, a weaker job market and "some pain" for households and businesses, Federal Reserve Chair Jerome Powell said on Friday in remarks warning there is no quick cure for fast rising prices.
"Reducing inflation is likely to require a sustained period of below-trend growth. Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down...
From the Right
Fed's Powell pledges to combat inflation 'forcefully,' but warns of economic pain aheadFederal Reserve Chairman Jerome Powell on Friday delivered a stark message on the state of the U.S. economy at the annual central bank gathering in Wyoming: Inflation remains painfully high, and cooling it will require forceful action that could soon bring "pain" to households and businesses nationwide.
In his hotly anticipated speech at the Kansas Federal Reserve's Jackson Hole symposium, Powell reiterated a pledge to "forcefully" fight inflation that is still running near the hottest pace in 40 years and wrestle it closer to the Fed's 2% goal.
"While higher...
From the Left
Powell: Fed could keep lifting rates sharply ‘for some time’Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed will likely impose more large interest rate hikes in coming months and is resolutely focused on taming the highest inflation in four decades.
Powell also warned more explicitly than he has in the past that the Fed’s continued tightening of credit will cause pain for many households and businesses as its higher rates further slow the economy and potentially lead to job losses.
“These are the unfortunate costs of reducing inflation,” he said in a high-profile speech at the...
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