United States Federal Reserve Chair Jerome Powell remarked on Friday during the Jackson Hole Economic Symposium that risk management considerations are "critical" at the moment to ensure that the central bank is not tightening its monetary policy either "too much" or "too little."
Powell stressed that a constant shift in supply and demand trends presents the Fed with further complications on whether it should raise interest rates again or not. He also reiterated that inflation has become "more responsive for labor markets" and highlighted a necessity for a "sustained period of stable market conditions."
Powell noted that the Fed must keep an "agile" approach to policymaking and remain careful with it as "doing too much can do unnecessary harm to the economy." He reaffirmed that the central bank will take into account all the outlooks and potential risks as well as incoming data before making a decision on new rate hikes.
