Federal Reserve Chair Jerome Powell said the American economy might be entering a “new normal”
coming out of the COVID-19 pandemic.
Powell made the remarks at a “Fed Listens” event in Washington, D.C, saying: “As policy makers we’re
committed to using our tools to help see the economy through what has been a uniquely challenging
period.”
Powell did not comment on the outlook for interest rates or offer more specifics on the economy.
The U.S. central bank raised its benchmark lending rate by three quarters of a percentage points last
week for a third consecutive time -- the most aggressive pace of tightening since the early 1980s.
Powell and his colleagues are moving rapidly to reduce the highest inflation in nearly 40 years coming out
of the global pandemic. Inflation has been worsened this year by Russia’s invasion of Ukraine, which
boosted food and energy prices globally.
U.S. consumer prices rose 8.3% in the 12 months through August and officials have vowed to lower them
even if that means causing a temporary recession.
