Jerome H. Powell, the head of the Federal Reserve, struck a resolute tone in a speech at the central bank’s most closely watched conference.
Jerome H. Powell, the chair of the Federal Reserve, used a closely watched speech to make clear that the central bank does not yet think it has gotten inflation fully under control and stands ready to raise interest rates further if needed.
Mr. Powell, who was delivering a speech Friday at the Federal Reserve Bank of Kansas City’s annual Jackson Hole conference in Wyoming, said that the Fed would “proceed carefully” as it decided whether to make further policy adjustments after a year and a half in which it had pushed interest rates up sharply.
But he also said that officials are warily watching economic data — which has been surprisingly resilient in recent months — as they try to assess how much their higher interest rates are really cooling the economy.
And Mr. Powell pledged in the remarks to stick with his quest to lower inflation “until the job is done.” Overall, the speech hammered home one main point: Fed policymakers are not ready to declare victory over inflation after a few good reports that have showed significant moderation in price increases. Officials want to see more progress to convince them that they truly have the situation under control.
“The message is the same: It is the Fed’s job to bring inflation down to our 2 percent goal, and we will do so,” Mr. Powell said, comparing his speech to a stern set of remarks he delivered at last year’s Jackson Hole gathering.
Central bankers have lifted interest rates to a range of 5.
