Recently, Federal Reserve Chair Jerome Powell spoke at the Federal Reserve Bank of Kansas City’s annual conference in Jackson Hole, Wyoming. Rather than a big-picture discussion of economic trends or Fed strategy, Powell gave short remarks on the Fed’s outlook for monetary policy.
Powell emphasized the Fed’s commitment to reducing inflation, even at the cost of lower economic growth. He said restoring price stability “will likely require maintaining a restrictive policy stance for some time.” He acknowledged that this “is likely to require a sustained period of below-trend growth” and “will also bring some pain to households and businesses.” Powell argued these costs are necessary since price stability “serves as the bedrock of our economy.”
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