Summary: Federal Reserve Chair Jerome Powell emphasizes the need for slower economic growth to address high inflation.

Federal Reserve Chair Jerome Powell highlighted the persistence of high inflation and the potential requirement for a slower-growing economy and job market to bring it down. While acknowledging that inflation has cooled compared to a year ago, Powell expressed uncertainty about whether it is on a sustainable path to the Fed's target of 2%. The Fed, which has raised interest rates 11 times in recent years, is expected to keep rates unchanged in the upcoming meeting, as some officials believe that rising longer-term interest rates could gradually cool the economy and curb inflation. However, if the economy continues to show strong growth and persistent inflation, the Fed may need to consider further tightening of monetary policy. As Powell states, evidence of above-trend growth or labor market tightness could pose risks to inflation and warrant additional tightening measures.

Tags: Fed Chair Jerome Powell, inflation, economic growth, interest rates, monetary policy