Why is Jerome Powell raising interest rates?

Why is Jerome Powell raising interest rates?

The bank’s chairman, Jerome Powell, said the bank must continue to raise interest rates to stop inflation from becoming a permanent aspect of the US economy. His words sent US stocks into a tailspin, with markets tumbling 3%. It comes as Americans are having to pay more for basic goods.

What does Jerome Powell’s speech on inflation mean for the economy?

Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy.

Will higher interest rates persist ‘for some time’?

In his annual Jackson Hole policy speech, Powell added that higher interest rates likely will persist “for some time. The historical record cautions strongly against prematurely loosening policy.”

Could Jerome Powell tip the US economy into recession?

(CNN) Democratic Sen. Elizabeth Warren of Massachusetts on Sunday slammed Federal Reserve Chairman Jerome Powell for suggesting interest rates should go up to combat inflation in the US, saying he could "tip this economy into recession."