AUGUST 26, 2022 UPDATE:
JACKSON HOLE, Wyoming (AP) — Federal Reserve Chair Jerome Powell delivered a stark message Friday (Aug. 26, 2022): The Fed is determined to fight inflation with more sharp interest rate hikes, which will likely cause pain for Americans in the form of a weaker economy and job losses. “These are the unfortunate costs of reducing inflation,” Powell said in a high-profile speech at the Fed’s annual economic symposium in Jackson Hole. “But a failure to restore price stability would mean far greater pain.” Investors had been hoping for a signal from Powell that the Fed might soon moderate its rate increases later this year if inflation were to show further signs of easing. But the Fed chair indicated that that time may not be near.
AUGUST 26, 2022:
JACKSON HOLE, Wyoming (AP) — When Federal Reserve Chair Jerome Powell delivers what will be his most closely scrutinized speech of the year Friday (Aug. 26, 2022), investors and economists will be turning over his remarks for any clues about how fast the Fed may continue to raise its short-term interest rate — and for how long. With inflation hovering near a four-decade high — almost 9% — Powell will likely stress that the Fed is determined to bring it down to its 2% target, no matter what it takes. The Fed’s rate hikes may well defeat inflation in time. But fear is growing that they may cause a recession in the process. Powell’s remarks will kick off the Fed’s annual economic symposium at Jackson Hole.
AUGUST 25, 2022:
JACKSON HOLE, Wyoming (AP) — A half-hour drive or so from the resort where the high priests of international finance have convened in Jackson Hole, Wyoming, to discuss the world’s economic challenges, a food bank distributes meals from a commercial garage. Across the street, a collection of townhomes that will sell for millions is nearing completion. “Unparalleled luxury,” its website says, in a “truly relaxing oasis.” As the Federal Reserve’s annual economic symposium gets under way at a lodge in Grand Teton National Park, some of the very problems Fed officials are grappling with — high inflation, soaring rental costs and home prices, and stark economic inequality — are plainly visible near the idyllic setting.
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