Fed Suggests More Rate Hikes, Economic 'Pain' as Inflation Fight Continues

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.