Powell defends “long-standing restrictive” monetary policy

Federal Reserve Chairman Jerome Powell said on Friday that reining in inflation “will likely require” maintaining a “tight” monetary policy for some time.

In a speech given at the beginning of the Jackson Hole meeting, which brings together economists and leaders of several central banks, Powell also said that this fight against inflation “will affect families and companies”, but considered that refusing to restore the stability of prices would be more damaging to the economy.

Regarding the decision that the US central bank may take in September on interest rates, the president of the Fed indicated that it will depend on the data available at that time.

The return to price stability “takes time” and will imply “a long period of lower economic growth” and also “a slowdown in the labor market,” he warned.