November 30, 2022—Although increases in consumer prices ebbed slightly in the United States in the latest numbers, Federal Reserve Chair Jerome Powell warned on Wednesday that inflation’s path remains “highly uncertain.” He noted that October’s figure of 7.7 percent annual growth is better than the previous Consumer Price Index estimates but said the single-month improvement doesn’t reflect a trend.
Powell said the Fed policy is likely to remain “restrictive for some time to come.” Addressing an audience at the Brookings Institution, he said price trends differ in three categories: core goods, housing, and services. Prices in core goods are moderating while housing service prices rose rapidly. Meanwhile, prices in services are likely to rise due to unmet demand in the labor market.
The Fed released detailed notes from information collected by its seven-member banks.
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