Fed Chair Powell: Slower economic growth may be needed to conquer stubbornly high inflation

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Fed Chair Powell: Slower economic growth may be needed to conquer stubbornly high inflation
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Federal Reserve Chair Jerome Powell says inflation is too high and getting to the Fed’s target will likely require a slower-growing economy and job market.

Federal Reserve Chair Jerome Powell said Thursday that inflation remains too high and that bringing it down to the Fed's target level will likely require a slower-growing economy and job market. Powell noted that inflation has cooled significantly from a year ago. But he cautioned that it's not yet clear whether inflation is on a clear path back to the Fed's 2% target.

4%, its highest level in 22 years. Economists and Wall Street traders expect the central bank to leave rates unchanged when it next meets in about two weeks. A string of Fed officials recently signaled that a rapid increase in longer-term interest rates, including the average 30-year fixed mortgage, which is nearing 8%, will likely cool the economy and help slow inflation. That would allow the Fed to stay on hold and observe how growth and inflation evolve in the coming months.

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