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US Fed chair hints at more rate hikes NHK

US Federal Reserve Board Chairman Jerome Powell has hinted at more interest rate hikes in the coming months to tame the most severe inflation in four decades.

Powell delivered a speech on Friday at the Fed's annual economic symposium in Jackson Hole in the western US state of Wyoming. Central bank governors and economists of other major countries took part.

Powell said the economy does not work for anyone without price stability. He described measures to reduce inflation as "unfortunate costs", and said they are likely to bring some pain to households and businesses.

Powell also pointed to the need for a restrictive policy for some time. He said the size of the rate hike will be determined at the Fed's next meeting starting on September 20.

Wall Street plunged in response. The Dow Jones Industrial Average closed more than 1,000 points lower than the previous day for the first time in three months.

Analysts say investors were hoping the Fed would move toward monetary easing if inflation could be quickly brought under control.

Instead, Powell's remarks left markets bracing for more tightening, and raised concerns about the economy cooling down.
Summary
U.S. Federal Reserve Chairman Jerome Powell has suggested further interest rate increases to combat high inflation, hinting at tightening policy for an extended period. Delivering a speech at the Fed's annual economic symposium in Jackson Hole, Wyoming, Powell warned of "unfortunate costs" related
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ID: 63095f60-af30-4e45-8ca5-1b6ec0a80b98

Category ID: nhk

URL: https://www3.nhk.or.jp/nhkworld/en/news/20220827_03/

Date: Aug. 27, 2022

Created: 2022/08/27 09:03

Updated: 2025/12/09 14:05

Last Read: 2022/08/27 09:03