Powell, restrictive policy for some time, caution

(ANSA) - NEW YORK, AUGUST 26 - "Restoring price stability will require maintaining a restrictive policy for a long time. History teaches us to be cautious against a premature easing of monetary policy".

This was stated by Fed President Jerome Powell.

    "Restoring price stability takes time and strong Fed action," Powell adds to Jackson Hole.

"Price stability is the foundation of the economy. Without price stability the economy does not work for everyone. In particular, without price stability" there are risks to the labor market and "the burden of high inflation would fall on those who can bear it. less ", explains Powell, pointing out that" restoring price stability will take time and a strong use of our tools to balance supply and demand. Reducing inflation will likely require a period of under-trend growth "and a weakening of the labor market. .

    "High rates, slower growth and weaker labor market conditions will bring down inflation, but it will cause pain for families and businesses," Powell adds. Unfortunately, these are the costs of reducing inflation but not bringing it down would cause even more problems".

(HANDLE).