Federal Reserve Chair Powell speaks on inflation at ‘Economic Outlook Luncheon’ in Warwick

WARWICK, R.I. (WLNE) — Federal Reserve Chair Jerome Powell visited Warwick on Tuesday to attend the Greater Providence Chamber of Commerce’s “Economic Outlook Luncheon.”

In his speech, Powell said the Federal Reserve can’t ignore the risk of higher inflation.

He said the possibility for rising prices is a lingering concern as America’s central bankers also keep an eye on a slowing labor market.

Powell described the dual issue threat as a “challenging situation” for he and federal policymakers.

“Uncertainty around the path of inflation remains high. We will carefully assess and manage the risk of higher and more persistent inflation. We will make sure that this one-time increase in prices does not become an ongoing inflation problem,” Powell said.

Powell said interest rates are in a good place to deal with either threat, suggesting he sees no urgency to lower rates aggressively, despite the president’s public pressure to do so.