Fed Chair: “Pain” of monetary policy tightening is required “for ‎some time”‎

Federal Reserve Chairman Jerome Powell said on Friday that the US economy will need tight monetary policy “for some time” before inflation is under control, a fact that means slower growth, a weaker labor market and “some pain” for families and companies, warning that there is no quick cure for high prices

According to “Reuters”, Powell added, according to prepared remarks for his speech at a central bank seminar in Jackson Hole, Wyoming, “It is likely that lowering inflation will require a permanent period of growth…Moreover, [actions] are likely to be taken.” to mitigate labor market conditions. Higher interest rates, slow growth and labor market conditions… will bring down inflation but will bring some pain to households and businesses.”

“These are the unfortunate costs of lowering inflation,” he said. But failure to restore price stability will mean much more pain.”

“The historical record strongly warns against premature (monetary) easing … We must continue to do so until the job is done,” Powell said.