BRICS expansion boosts role of Mideast countries

BRICS expansion boosts role of Mideast countries

KUWAIT: The highly-anticipated speech by Fed chair Jerome Powell at the Jackson Hole Symposium resembled remarks he made last year, during which he warned that “some pain” was likely for the Fed to bring inflation back down. However this time around, annual inflation is running at 3.2 percent versus the 8.3 percent level in August 2022, allowing room to alleviate fear in markets. Powell called for more vigilance in the fight against rising prices, warning that additional interest rate increases may be needed.

Although he acknowledged slow and healthy progress has been made, he added that inflation is still above where policy makers feel comfortable and provided little indication that the central bank will ease up anytime soon. “Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell said. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

He also pushed back on speculation that the Fed could raise its inflation target, an idea that has been hotly debated mostly by academics in recent months. “Two percent is and will remain our