‘Unfortunate costs’: Interest rates will remain elevated ‘for some time’

by WorldTribune Staff / 247 Real News August 28, 2022

The central bank will likely impose more significant increases in the interest rates in the coming months, Federal Reserve Chairman Jerome Powell said on Friday.

The central bank is expected to raise its benchmark lending rate again at its meeting in September.

Speaking at an annual economic conference in Jackson Hole, Wyoming, Powell said interest rates will remain at higher levels that will slow the economy “for some time.”

Powell said the Fed‘s moves could lead to job losses, and mean higher borrowing costs for consumers and businesses.

“These are the unfortunate costs of reducing inflation,” Powell said. “But a failure to restore price stability would mean far greater pain.”

The Fed has raised interest rates four times this year. Inflation in June was the highest in 41 years.

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