BIDENOMICS: U.S. Federal Reserve Preparing ‘To Raise Rates Further’

Have you bought groceries lately? Tried to get a mortgage. The pain and struggle of daily life is another huge news story the Democrat media axis ignores as they lick their claws in their gilded cages.

Fed Chair Powell calls inflation ‘too high’ and warns that ‘we are prepared to raise rates further’

By: CNBC, Jeff Cox, Aug 25 2023:

While acknowledging that progress has been made, the central bank leader said inflation is still above where policymakers feel comfortable.

The speech resembled remarks Powell made last year at Jackson Hole, during which he warned that “some pain” was likely as the Fed continues its efforts to pull runaway inflation back down to its 2% goal.

A strong economy and decelerating inflation also give the Fed room to “proceed carefully” at upcoming meetings.

Federal Reserve Chair Jerome Powell on Friday called for more vigilance in the fight against inflation, warning that additional interest rate increases could be yet to come.

While acknowledging that progress has been made and saying the Fed will be careful in where it goes from here, the central bank leader said inflation is still above where policymakers feel comfortable. He noted that the Fed will remain flexible as it contemplates further moves, but gave little indication that it’s ready to start easing anytime soon.

“Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell said in prepared remarks for his keynote address at the Kansas City Fed’s annual retreat in Jackson Hole, Wyoming. “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.”

Federal Reserve Chair Jerome Powell signaled the US central bank is prepared to raise interest rates further if needed and keep borrowing costs high until inflation is on a convincing path toward the Fed’s 2% target https://t.co/CZfNbQTNVU pic.twitter.com/I736ggIVOG

— Bloomberg TV (@BloombergTV) August 25, 2023

The speech resembled remarks Powell made last year at Jackson Hole, during which he warned that “some pain” was likely as the Fed continues its efforts to pull runaway inflation back down to its 2% goal.

But inflation was running well ahead of its current pace back then. Regardless, Powell indicated it’s too soon to declare victory, even with data this summer running largely in the Fed’s favor. June and July both saw easing in the pace of price increases, with core inflation up 0.2% for each month, according to the Bureau of Labor Statistics.

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AUTHOR

Pamela Geller

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