Inflation To Rise Again, Fed Chair Jerome Powell

Story: Divya Sinha

Federal Reserve Chairman Jerome Powell said that Fed will continue raising interest rates next year, even as the economy could head into recession.

He added that higher costs will be paid unless the Federal Reserve tightens its grip on inflation.

Fed decision-making committee raised the benchmark overnight rate by 0.5%, but Powell says recent signs of slowing inflation had yet to inspire confidence that the battle had been won.

Also, expects it to continue rising above 5% by 2023, a level not seen since the sharp recession in 2007.

Powell says, "We don't talk about this kind of recession, that kind of a recession. We just make these forecasts".

And Powell wishes there was a completely painless way to restore price stability and said this is the best they can do.

Fed's projections on the rise in the unemployment rate to 4.6% from 3.7% currently are likely to continue.