(ANSA) – NEW YORK, AUGUST 26 – “Restoring price stability will require maintaining a restrictive policy for some time. History teaches us to be cautious against a premature easing of monetary policy”. This was stated by Fed President Jerome Powell.
“Restoring price stability takes time and strong action from the Fed,” Powell adds to Jackson Hole. “Price stability is the foundation of the economy. Without price stability the economy does not work for everyone. In particular, without price stability” there are risks to the labor market and “the burden of high inflation would fall. on those who can take it less, “explains Powell, pointing out that” restoring price stability will take time and a strong use of our tools to balance supply and demand. Reducing inflation will likely require a period of growth below the trend “and a weakening of the labor market.
“High rates, slower growth and weaker conditions on the labor market will bring down inflation, but they will cause pain for families and businesses,” Powell adds. Unfortunately, these are the costs of reducing inflation but not doing it. going down would cause even more problems. ” (HANDLE).