US Fed Chair Powell: Inflation Set to Ease, But Challenges Remain

Shafaq News/ Speaking at the annual central bank governors' meeting in Jackson Hole, Wyoming, Jerome Powell, the head of the US Federal Reserve, unveiled that the United States is on the cusp of witnessing a decline in inflation rates. However, he emphasized that considerable efforts are still required to address the issue.

Powell highlighted that the receding inflation results from various contributing factors, emphasizing the need for sustained efforts to achieve lasting price reductions. He stated firmly, "Our primary objective remains lowering the inflation rate to a 2 percent level."

While asserting that strides have been taken toward labor market equilibrium in the US, Powell acknowledged that further progress is necessary. He reaffirmed the Federal Reserve's readiness to increase interest rates as necessary.

Powell expounded that achieving a return to the 2% inflation target demands a measured approach to economic growth. He noted, "Sustaining a reduction in inflation requires a period of robust economic expansion," underscoring the ongoing challenges of a sluggish labor market, with an unemployment rate hovering around 3.6 percent.