Fed boss Jerome Powell advocated a tough policy on inflation. (©AFP)
US Federal Reserve Chairman Jerome Powell has dashed hopes of a loosening of monetary policy in 2023.
The chairman of the US Federal Reserve (Fed) has finally set the record straight. During the Jackson Hole symposium, which brings together every year bosses or representatives of the main central banks of the planet, the speech of August 26 by Jerome Powell, was eagerly awaited.
It did not disappoint the “hawks”, that is to say the pure and hard supporters of the fight against inflation, and dashed the hopes of those who already saw an imminent monetary loosening. In short, as long as the problem of inflation will not be solved, the Fed will not lower its guard, hammered its boss. Emphasizing that “restoring price stability will take time”.
But while higher interest rates, slower growth and looser labor market conditions will reduce inflation, they will also hurt households and businesses, warned Jerome Powell.
Inflation still high
Enough to convince those who still doubted it: even a recession will not change the course of this restrictive policy, and this as long as inflation does not return to the 2% target set by the institution.
However, if the market reacted very badly to Powell’s speech, on the merits, his remarks do not come as a surprise. The Chairman of the Minneapolis Federal Reserve (one of twelve regional central banks
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