Chairman spoke for about nine minutes in his much-anticipated appearance at the Jackson Hole economic policy symposium on Friday, but it was sufficient to send a clear message. Financial markets tumbled and the widely tracked S&P 500 cracked by over 3.3 per cent. With some early signs of relatively low inflation, partly because of a decline in commodity prices, markets had started believing that the Fed would not tighten policy to the extent anticipated earlier. One of Mr Powell’s recent statements was also interpreted in the same vein. But this time he was more direct and clearly underlined that restoring price stability would take time and the Fed would use its tools “forcefully to bring demand and supply into better balance”.

This would undoubtedly impose a cost on the economy in the short run. Renewed clarity in the Fed’s stance warrants adjustments in global financial markets.



TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS


What you get on Business Standard Premium?


OR







Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



First Published: Sun, August 28 2022. 23:21 IST

Source