US Fed chairman pledges to tame high inflation by ‘using our tools forcefully’
- Jerome Powell also warns of ‘pain’ continuing for some time in highly anticipated remarks delivered at annual economic symposium
- Emphasis on ‘price stability’ follows Beijing meeting airing fears of global recession, financial shocks and worsening US-China ties
“We will keep at it until we’re confident the job is done,” Powell told the annual Jackson Hole Economic Symposium, held in Wyoming since 1982. “It is true that the current high inflation is a global phenomenon and that many economies around the world face inflation as high or higher than seen here in the United States.”
Comments by US central bank officials tend to be purposefully vague as even a few words can send stocks and bonds soaring or plummeting. In his unusually short eight-minute speech, Powell said his remarks were meant to be direct and narrowly focused.
The former investment banker noted some modest cause for optimism, including a slight reduction in the July US inflation rate to 8.4 per cent from its record 8.5 per cent a month earlier. But growth is weakening, the job market remains overheated and a single month’s data is inconclusive.
