Federal Reserve Chairman Jerome Powell pledged that he and his colleagues will keep raising interest rates until they’re confident that inflation is under control.
In short and direct remarks Friday at an economic conference in Jackson Hole, Wyo., Powell acknowledged that higher borrowing costs will likely cause some short-term pain for families and businesses.
Unemployment may be higher and the economy may grow more slowly. But Powell warned the alternative — allowing high inflation to continue unchecked — would be worse.
“Without price stability, the economy does not work for anyone,” he said.
“We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply, and to keep inflation expectations anchored,” Powell said. “We will keep at it until we are confident the job is done.”