Lowering inflation will ‘bring some pain’ to Americans through lost jobs and smaller raises, Powell says
Business InsiderNov 27, 2022
The Facts
In an opening speech at the annual Jackson Hole Economic Symposium in Wyoming on Friday, Federal Reserve (Fed) chairman Jerome Powell signaled that the US central bank is expected to keep raising interest rates and that they're likely to remain high for "some time."
The annual gathering is a conference featuring central bankers from around the world that consists of a sequence of papers on economic ideas related to the year's topic, with this year's being "Reassessing Constraints on the Economy and Policy."
The Spin
Establishment-critical narrative
Bringing down prices must be a top priority for the Fed, but the standard approach of aggressive interest rate hikes is a cruel method that's only making life harder for Americans who are feeling the pressure. With a recession on the horizon, the Fed's so-called solution is seemingly worse than the problem.
Pro-establishment narrative
It's clear that there are tough times ahead, but we have to prioritize long-term health over short-term gains. While the process of bringing down inflation is painful, the alternative is far worse. Under The Fed's guidance, there's hope that this will be resolved as swiftly as possible.
