Powell: Fed could keep lifting rates sharply for some time

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BY: Dinesh!

Federal Reserve Chair Jerome Powell sent a strong message on Friday: The Fed is expected to raise interest rates more in the coming months, with the goal of managing the greatest inflation in four decades.

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Powell also warned, more emphatically than in the past, that the Fed's continuing tightening of credit will hurt many households.

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and businesses, as its increased rates slow the economy further and may result in job losses.

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"These are the terrible price of lowering inflation," he said at the Federal Reserve's annual economic conference in Jackson Hole.

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“But a failure to restore price stability would mean far greater pain.”

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Investors had hoped for a sign that the Fed might soon slow its rate rises later this year if inflation continued to fall.

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But the Fed chair indicated that that time may not be near.

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Following two meetings in which it raised its main short-term rate by three-quarters of a point,

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part of the Fed's fastest set of rate increases since the early 1980s — Powell indicated the Fed might lighten up on that pace "at some time," implying that no such slowing is imminent.

Credit: @socilmedia

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