(Finance) – Al Jackson Hole Federal Reserve Symposiumthe number one of the US central bank, Jerome Powell, reiterates that inflation “remains too high” and, in spite of market expectations which, based on Fed Funds futures, expected the Fed to leave interest rates unchanged between now and the end of the year, he says: “we remain intent on raising rates further“.
The president acknowledges that progress has been made, but adds that the US central bank will keep monetary policy at a tightening level until it is sure that inflation is moving sustainably towards target.
“The Federal Reserve’s job is to bring inflation back to 2%, and we will” – explains the banker -. We have raised rates significantly and although inflation has come down from its peak, a welcome development, it remains too high and therefore we remain intent on raising rates further until inflation falls towards 2% target”.
To the Federal Reserve Board”we will proceed carefully when will we decide whether to tighten further or, instead, keep the monetary policy line unchanged e wait for more data” – Powell adds – explaining that restoring price stability is crucial “to achieve both aspects of our dual mandate”, which provides for the control of inflation and, secondly, to promote maximum employment.
“We will need price stability to achieve a sustained period of strong labor market conditions that will benefit all,” concludes the US central bank issue.