The Globe and Mail reports in its Friday, Nov. 10, edition that Federal Reserve chairman Jerome Powell said on Thursday that Fed officials "are not confident" that interest rates are yet high enough to finish the battle with inflation. A Reuters dispatch to The Globe reports that Mr. Powell said the Fed "is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 per cent over time. We are not confident that we have achieved such a stance." Mr. Powell said in remarks prepared for delivery to an International Monetary Fund research conference, "If it becomes appropriate to tighten policy further, we will not hesitate to do so." He added that further policy moves would be conducted "carefully, allowing us to address both the risk of being misled by a few good months of data, and the risk of over-tightening. We are making decisions meeting by meeting." Mr. Powell said the fight to restore price stability "has a long way to go." Mr. Powell said it was "too soon" to know if the low and falling interest rate world that characterized the decades before the pandemic were gone for good, but that would be a focus of the Fed's next framework review.
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