Powell warns against inflation becoming 'entrenched'

Speech to the Senate Banking Committee

Elliot Gulliver-Needham
clock • 1 min read

Federal Reserve chair Jerome Powell warned yesterday (11 January) of the potential for continued high inflation to hurt the American economy, adding that the Fed is prepared to start tightening monetary policy.

In a speech to the Senate Banking Committee, the Fed chair said that the central bank was determined not to allow inflation to become "entrenched," and said that "the economy no longer or wants the very accommodative policies we have had in place". "If we see inflation persisting at high levels longer than expected if we have to raise interest rates more over time, we will," he cautioned. Powell left the dates of potential rate hikes open, stating that "the committee hasn't made any decisions about the timing of any of that — I think we're going to have to be both humble and a bit nim...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Gilt yields fall after Donald Trump backs down in 'tariff war'

Gilt yields fall after Donald Trump backs down in 'tariff war'

US president pauses most additional tariffs

Jonathan Stapleton
clock 10 April 2025 • 2 min read
Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read
Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read