Powell Warns Fed May Continue to Raise Interest Rates as Inflation Is ‘Too High’

"As is often the case, we are navigating by the stars under cloudy skies," says Fed Chair

Federal Reserve Board Chair Jerome Powell speaks during a news conference in Washington on Feb. 1, 2023. Saul Loeb/AFP via Getty Images

Federal Reserve Chair Jerome Powell raised the possibility of additional monetary policy conditions in the central bank’s fight against inflation, warning that prices remain too high.

Speaking at the annual Jackson Hole economic symposium on Aug. 25, Mr. Powell reiterated that the institution is prepared to keep raising interest rates if appropriate. Even without any extra rate hikes, the Fed plans to hold the benchmark fed funds rate at a restrictive level until policymakers are confident that inflation is trending downward to the Fed’s 2 percent target rate.