AUGUST 25, 2023, UPDATE:
JACKSON HOLE, Wyoming (AP) — The continued resilience of the U.S. economy could require further interest rate increases, Federal Reserve Chair Jerome Powell said in a closely watched speech (Aug. 25, 2023) that also highlighted the uncertain nature of the economic outlook. Powell noted that the economy has been growing faster than expected this year and that consumers have kept spending briskly — trends that could keep inflation pressures high. He also reiterated the Fed’s determination to keep its key rate elevated until price increases are reduced to the central bank’s 2% target. “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,” the Fed chair said.
AUGUST 25, 2023:
JACKSON HOLE, Wyoming (AP) — When Federal Reserve Chair Jerome Powell delivers a high-profile speech Friday (Aug. 25, 2023) in Jackson Hole, Wyoming, many analysts think he could make one thing clear: That the Fed plans to keep its benchmark interest rate at a peak level for longer than had been expected. Powell isn’t likely to say whether the Fed will continue raising rates. But he may signal that any rate cuts are unlikely until well into next year. The central bank has already helped drive inflation down from painfully high levels. But Fed officials have said they need to keep rates high to further slow borrowing and spending and reduce inflation to their 2% target.
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