Powell warns against inflation becoming 'entrenched'

Speech to the Senate Banking Committee

Elliot Gulliver-Needham
clock • 1 min read

Federal Reserve chair Jerome Powell warned yesterday (11 January) of the potential for continued high inflation to hurt the American economy, adding that the Fed is prepared to start tightening monetary policy.

In a speech to the Senate Banking Committee, the Fed chair said that the central bank was determined not to allow inflation to become "entrenched," and said that "the economy no longer or wants the very accommodative policies we have had in place". "If we see inflation persisting at high levels longer than expected if we have to raise interest rates more over time, we will," he cautioned. Powell left the dates of potential rate hikes open, stating that "the committee hasn't made any decisions about the timing of any of that — I think we're going to have to be both humble and a bit nim...

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