WATCH: Federal Reserve Chair Powell warns interest rates could increase ‘for some time’

JACKSON HOLE, Wyoming (AP) — Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed will likely impose more large interest rate hikes in coming months and is resolutely focused on taming the highest inflation in four decades.

Watch Powell’s remarks in the player above.

Powell acknowledged that the Fed’s continued tightening of credit will cause pain for many households and businesses as its higher rates further slow the economy and potentially lead to job losses.

READ MORE: July retail sales were flat, as customers weather inflation

“These are the unfortunate costs of reducing inflation,” Powell said in the written version of a high-profile speech he is giving at the Fed’s annual economic symposium in Jackson Hole. “But a failure to restore price stability would mean far greater pain.”

Powell’s message may disappoint investors who were hoping for a signal that the Fed might soon moderate its rate increases later this year if inflation were to show further signs of easing.

After hiking its key short term rate by three-quarters of a point at each of its past two meetings — part of the Fed’s fastest pace of rate increases since the early 1980s — Powell said the Fed might ease up on that pace “at some point” — suggesting that any such slowing isn’t near.

The Fed chair made clear that he expects rates to remain at levels that should slow the economy “for some time.”

With inflation hovering near a four-decade high — almost 9 percent — Powell will likely stress that the Fed is determined to bring it down to its 2 percent target, no matter what it takes. The Fed’s rate hikes may well defeat inflation in time. But there are fears that they may cause a recession in the process.

This is a developing story and will be updated

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