Federal Reserve Chairman Jerome Powell said Friday the central bank will likely impose more large interest-rate hikes in the coming months to tame the highest inflation in four decades.
Speaking at an annual economic conference in Jackson Hole, Wyoming, Mr. Powell said interest rates will remain at higher levels that will slow the economy “for some time.” He 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,” Mr. Powell said. “But a failure to restore price stability would mean far greater pain.”
Stocks were trading lower Friday on his remarks.
The Fed has raised interest rates four times this year in response to inflation that peaked at 9.1% in June, the highest in 41 years. The central bank is expected to raise its benchmark lending rate again at its meeting in September.
In his speech, Mr. Powell said the economy “continues to show strong underlying momentum” despite some mixed data.
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“We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%,” Mr. Powell said. “We will keep at it until we are confident the job is done.”
• Dave Boyer can be reached at dboyer@washingtontimes.com.
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