Worsh: Fed can cut inflation without job impact

Federal Reserve Chairman, Jerome Powell, stated that the U.S. central bank can reduce inflation without having to weaken the labor market or limit economic growth after raising interest rates to a range of 3.75% to 4%. He emphasized that the unemployment rate remains consistent with full employment levels and that inflation remains high despite the economic improvement since July. Powell also indicated that a further interest rate hike of at least 25 basis points is expected before the end of the year, with continued focus on price stability and avoiding negative impacts on the labor market. Additionally, he pointed out that the rise in bond yields reflects a strong economy rather than a loss of confidence in monetary policy. He noted that inflation faces pressure from rising oil prices but cannot directly control the prices of specific goods.

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