Jerome Powell

Fed Chairman Jerome Powell warned that he expects the central bank to continue raising rates in a way that will cause "some pain" to the economy.

Powell said the decision "will depend on the totality of the incoming data and the evolving outlook. "Our aim is to avoid that outcome by acting with resolve now." While stating repeatedly that he doesn't think recession is an inevitable outcome for the U.S. In that case, then-Fed Chairman Paul Volcker pulled the economy into recession to tame inflation. "We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%," he said. As of Friday morning after Powell's speech, the probability for a 0.75 point move was at 54.5%, according to the CME Group's FedWatch measure. "Without price stability, the economy does not work for anyone." However, Powell and most other economists see the underlying economy as strong if slowing. At the same time, other areas of the economy are slowing. Powell said the Fed will not be swayed by a month or two of data. "These are the unfortunate costs of reducing inflation. "While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses," he said in prepared remarks.

The S&P 500 fell 3.4 percent, its worst daily showing since mid-June, after the Federal Reserve chair spoke about the path ahead for monetary policy.

A second data set showed a decline in future expectations for the rate of inflation. The backdrop sets up a month ahead that already sits uncomfortably in investors’ psyche. It’s hard to make a positive case for equities after this.” Trading in some corners of the financial markets offered signs that Mr. The central bank has stepped in to support financial markets on numerous occasions since the 2008 financial crisis. So far, despite some expectations that higher borrowing costs would eventually slow hiring, employers in the United States have Such caution reflects a marked change of sentiment on Wall Street, where trading in July and early August had been defined by a roaring market rebound, in part predicated on the idea that the Fed was about to start easing off its aggressive campaign to raise interest rates. The central bank is expected to raise interest rates to their highest level since 2008 when officials meet in September, increasing borrowing costs for consumers and companies and cooling the economy. “This was not the Powell we normally see where he tries to be more balanced,” Mr. Following Friday’s market moves, the index remains about 15 percent lower for the year. - College Savings: As the stock and bond markets wobble, 529 plans are taking a tumble. The slump was broad, with every sector of the index lower.

The Federal Reserve is committed to lowering inflation, which means interest rates will keep rising, the Fed chair said in a speech in Jackson Hole.

Medora Lee is a money, markets , and personal finance reporter at USA TODAY. But since one month doesn't make a trend, Powell may leave himself some wiggle room to see what another month of data shows before the Fed's policy arm meets again. The Fed's policy-making arm meets again on Sept. ] [At the last meeting in July of the Fed’s policy-making committee, the Fed raised its short-term benchmark fed funds rate by 75 basis points. But with inflation still hovering near 40-year highs, Powell said he doesn’t think it’s appropriate to back off now. In the Fed’s last economic projections in June, it saw the long-term fed funds rate at 2.5%. ] [Analysts gave Powell three cheers for delivering a clear message that rate hikes aren’t ending yet.] [In recent weeks, financial markets had rallied, pricing in rate cuts next year. "Supply chains are consistently improving and should continue to bring inflation rates down.” He suggests diversifying portfolios to mitigate interest rate risk. Consumers should continue to expect more rate increases. 13 and the monthly jobs report on Sept. But by how much more will depend on incoming data, he said.

At the Federal Reserve's annual Jackson Hole Economic Symposium, chairman Jerome Powell telegraphed a greater sense of urgency about taming inflation than ...

"We will have to see whether they have the strength of their conviction. Controlling inflation quickly is of paramount importance because inflation expectations can become a destructive self-fulfilling prophecy. "These are the unfortunate costs of reducing inflation. "I would interpret that as a willingness to see the unemployment rate creep a little higher here to get to that end of reducing demand," said Rob Haworth, senior investment strategist at U.S. "Even if they are secretly encouraged about inflation, they're definitely not going to say it." "It definitely increases the possibility of 75 [points]", said Jay Hatfield, founder and CEO of Infrastructure Capital Management.

The major averages declined for a second week. The Dow tumbled 4.2%. The S&P 500 and Nasdaq Composite lost roughly 4% and 4.4%, respectively. Powell reiterated ...

"We think the June lows are probably in but the caveat there is that it's not going to be smooth sailing. However, the market is still in for more turbulence, he says. Federal Reserve](https://www.cnbc.com/federal-reserve/) Chairman Jerome Powell's speech at the Jackson Hole economic symposium. "Right now, the market is pricing 3.62% for the end of this year, and the peak to be about 3.78% in March," said Schumacher. A sharp sell-off in chip stocks in this year has offered investors an opportunity to buy the dip. It was expected that the PCE index would be unchanged on a monthly basis in July and up 6.4% on the year. It's one of the reports the Fed will be watching ahead of its September meeting, when it is likely to raise interest rates again. "But the potential for a hard recession (our macro colleagues expect S&P EPS to fall in 2023 and question the excitement around 8.5% inflation) may result in another risk asset correction including crypto/digital assets." The fed funds futures market is pricing in some significant hikes, including the 64 basis points of a hike in September, notes Schumacher. The [2-year yield,](https://www.cnbc.com/quotes/US2Y) which is most driven by Fed policy, was slightly lower at 2.38%. That was up from 51.5 in July and above the 55.3 expected by economists, according to Dow Jones. [Affirm](//www.cnbc.com/quotes/AFRM)— Shares plunged more than 20% after the consumer lending company reported a larger-than-expected quarterly loss, and issued a disappointing outlook.

In our latest episode of the Bloomberg Opinion podcast, we examine the Fed's glide-path, the evolution of the Ukraine war and Germany's energy conundrum.

Stocks slide after Jerome Powell warns of 'pain' ahead from the Fed's inflation fight. Investors were looking to the Federal Reserve chair for clarity over the ...

A second data set showed a decline in future expectations for the rate of inflation. The backdrop sets up a month ahead that already sits uncomfortably in investors’ psyche. It’s hard to make a positive case for equities after this.” Trading in some corners of the financial markets offered signs that Mr. The central bank has stepped in to support financial markets on numerous occasions since the 2008 financial crisis. So far, despite some expectations that higher borrowing costs would eventually slow hiring, employers in the United States have Such caution reflects a marked change of sentiment on Wall Street, where trading in July and early August had been defined by a roaring market rebound, in part predicated on the idea that the Fed was about to start easing off its aggressive campaign to raise interest rates. The central bank is expected to raise interest rates to their highest level since 2008 when officials meet in September, increasing borrowing costs for consumers and companies and cooling the economy. “This was not the Powell we normally see where he tries to be more balanced,” Mr. Following Friday’s market moves, the index remains about 15 percent lower for the year. - College Savings: As the stock and bond markets wobble, 529 plans are taking a tumble. The slump was broad, with every sector of the index lower.

Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed is determined to fight inflation with more sharp interest rate hikes, ...

The central bank has lifted its benchmark rate by 2 full percentage points in just four meetings, to a range of 2.25 percent to 2.5 percent. Still, some officials said there was a risk that the Fed would raise borrowing costs more than necessary, risking a recession. If inflation were to fall closer to the Fed’s 2 percent target and the economy weakened further, those diverging views could become hard to reconcile. If rates reached their projected level at the end of this year, they would be at the highest point since 2008. Yet employers are still hiring rapidly, and the number of people seeking unemployment aid, a measure of layoffs, remains relatively low. What particularly worries Powell and other Fed officials is the prospect that inflation would become entrenched, leading consumers and businesses to change their behavior in ways that would perpetuate higher prices. Though prices did jump 6.3 percent in July from 12 months earlier, that was down from a 6.8 percent year-over-year jump in June, which had been the highest since 1982. On Friday, an inflation gauge that is closely monitored by the Fed showed that prices actually declined 0.1 percent from June to July. An increase of either size, though, would exceed the Fed’s traditional quarter-point hike, a reflection of how severe inflation has become. A number of Fed officials, though, have pushed back against that notion. [WATCH: Federal Reserve Chair Powell speaks in Jackson Hole amid interest rate speculation](https://www.pbs.org/newshour/economy/watch-live-federal-reserve-chair-powell-speaks-in-jackson-hole-amid-interest-rate-speculation) The Dow Jones average finished down 3 percent on Friday, its worst day in three months.

Jerome Powell, the Federal Reserve chair, is speaking at the Jackson Hole Economic Symposium, the central bank's most prominent annual gathering.

Stories like this are possible because of our deep commitment to original reporting, produced by a global staff of over 1,700 journalists who have all dedicated themselves to helping you understand the world. That work is only possible because of the support of our subscribers. Jerome Powell, the Federal Reserve chair, is speaking at the Jackson Hole Economic Symposium, the central bank’s most prominent annual gathering.

NEW YORK (AP) — The Dow Jones Industrial Average sank more than 1000 points Friday after the head of the Federal Reserve dashed Wall Street's hopes that it ...

Investors got a fresh set of warnings from companies about the persistent impact from inflation and a slowing economy. It’s a potentially encouraging signal, which may embolden more of Wall Street to say that the worst of inflation has already passed or will soon. But the job market has remained strong, helping to prop up the economy. The Fed’s last two hikes have been by 0.75 points, and a slight majority of bets on Wall Street are favoring a third such increase in September, according to CME Group. It tends to track expectations for Fed action. But some investors speculated the central bank might pause or even reverse course next year if inflation subsides, leading to a rally for stocks in July and early August. But he also said the pain would be far greater if inflation were allowed to fester and that “we must keep at it until the job is done.” The Dow lost 1,008.38 points to close at 32,283.40. If that were to happen, it could cause a self-perpetuating cycle that worsens inflation. All told, the S&P 500 fell 141.46 points to 4,057.66. The hikes have already hurt the housing industry, where more expensive mortgage rates have slowed activity. Recent earnings reports were better than some analysts had expected, and there are signs that inflation may have peaked although it remains at sharply elevated levels.