Fed chief warns of "pain" for economy amid efforts to tame inflation

Politics Economy

U.S. Federal Reserve Chairman Jerome Powell on Friday warned that efforts to bring down inflation through interest rate hikes will inflict "some pain" on the economy, but said the strategy would avert far worse outcomes. Higher interest rates, slower growth and softer labor market conditions are the "unfortunate costs of reducing inflation," Powell said in a speech at a symposium in Jackson Hole, Wyoming, after data showed the U.S. economy shrank for the second straight quarter from April to June, a factor that could typically constitute a recession. The administration of President Joe Biden, ...

Kyodo News

Kyodo News