Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting, at the Federal Reserve in Washington, DC, on July 26, 2023. AFP file picture.
US Federal Reserve Chairman Jerome Powell said Friday that the central bank is ready to raise interest rates if necessary, and will continue its tightening monetary policy, until inflation moves towards the 2% target. Powell stressed, in his speech at Jackson Hole, that reducing inflation to 2% in a sustainable manner will require a period of economic growth below the prevailing trend, in addition to a slowdown in the labour market, which is still tight, while the rate remains. Unemployment is down at about 3.6%.