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Last week, the Federal Reserve Bank of Kansas City hosted its 2022 Economic Policy Symposium, “Reassessing Constraints on the Economy and Policy,” in Jackson Hole, Wyo. Federal Reserve Chairman Jerome Powell vowed to fight against high inflation during his remarks on Friday.

Powell stated the central bank will do what it takes to rein in prices and foreshadowed further interest rate increases. In addition. Powell warned that rates might need to stay high for some time to ensure price spikes do not persist.  

“We must keep at it until the job is done,” said Powell. “Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance.”

The July Federal Open Market Committee (FOMC) meeting revealed that the Fed remains concerned about inflation. In their efforts to tighten inflation back to their two percent target, the Fed signaled they were willing to cause a slowdown in the labor market or economic growth.      

NAFCU will continue to share pertinent economic updates with credit unions via NAFCU Today.