The Fed gets its last look at inflation data before the meeting next week, when the Bureau of Labor Statistics releases the August consumer price index data. Economists are expecting a 0.2% headline increase in the CPI after it was flat in July, according to FactSet.
“We need to act now, forthrightly, strongly, as we have been, and we need to keep at it until the job is done to avoid that,” Powell said.
Powell noted the strong labor market, with strong hiring levels continuing despite the rate increases, even as Fed officials expect the official unemployment rate to drift higher.
“What we hope to achieve is a period of growth below trend which will cause the labor market to get back into better balance and that will bring wages back down to levels that are more consistent with 2% inflation over time,” he said.
