(Finance) – “The main objective of the Federal Open Market Committee (FOMC) right now it is to bring inflation back to the 2% target. Price stability is the responsibility of the Federal Reserve and serves as the foundation of our economy. ”Thus the president Jerome Powellin his eagerly awaited speech at the Jackson Hole Economic Symposium.
“Without price stability, the economy does not work for everyone“- explained Powell – warning that the restoration of this stability” will take time and the forced use of our tools to bring supply and demand into a better balance “. It is probable – said the banker – that”reducing inflation requires a prolonged period of growth below the trend “. There will be “difficulties for families and businesses. These are unpleasant consequences of what needs to be done to reduce inflation. But not doing it would be worse“.
The US economy is clearly slowing from the historically high growth rates of 2021 – the Fed chairman pointed out – but the the job market is particularly strong. As for the today’s data on lower inflationin July, Powell explained that although it is a positive result, the One month’s improvement is not enough for the Fed.
Our rate decision in September – he said – “it will depend on the totality of the incoming data and the evolving prospects“At some point, with the further tightening of the monetary policy stance,” it will probably be appropriate to slow down the pace of increases. “