By
Xinhua/Shutterstock / Xinhua/ShutterstockFederal Reserve Chair Jerome Powell reiterated that inflation is still “too high” and that the path to bringing it down will be “bumpy,” in an Oct. 19 speech at the Economic Club of New York. He added that the Fed remains “resolute” in its commitment to returning inflation to 2%. His remarks come a few days ahead of the next Federal Open Market Committee (FOMC) meeting, on Oct. 31.Discover: 10 US Cities That Are Running Out of Jobs and Cheap HousingLearn: What To Do If You Owe Back Taxes to the IRS“Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said in his prepared remarks. We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters. While the path is likely to be bumpy and take some time, my colleagues and I are united in our commitment to bringing inflation down sustainably to 2%.”While inflation has been cooling down — at 3.7% according to the Consumer Price Index (CPI), released Wednesday, Oct. 12 — which is a notable decrease from the 8.2% the same month last year- it is still a far cry from the Fed’s 2% target.Following its most recent two-day Federal Open Market Committee (FOMC) meeting on Sept. 19-20, the Fed paused its interest rate hikes for the second time this year, following 11 increases since March 22. The decision, while welcome news for Americans, was largely seen as a “wait and assess” move.What does it mean for the Fed’s next moves?In terms of what Powell’s Oct. 19 speech means for where the Fed is headed next, some experts noted that he clearly telegraphed there will be no hike in November but left open the possibility for December or a future meeting.“Reading the tea …
See the entire article on inflation, or, read more Arizona real estate investing news. It’s your call!
