Federal Reserve Chair Jerome Powell said officials will not flinch in the battle to curb inflation, hardening expectations that they will deliver a third straight jumbo rate hike later this month.
“We need to act now, forthrightly, strongly as we have been doing,” Powell said Thursday in remarks at the Cato Institute’s monetary policy conference in Washington. “My colleagues and I are strongly committed to this project and will keep at it.” He spoke with a moderator in a virtual question-and-answer session.
“The Fed has and accepts responsibility for price stability,” he said, noting that history cautions against prematurely loosening policy. That reiterates a warning he issued Aug. 26 at the Fed’s annual retreat in Jackson Hole, Wyoming. The U.S. economy has fared well on the back of steady consumer spending even as higher rates bite down on housing and investment. The labor market remains strong with unemployment at 3.7 per cent.
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