Fed's Jerome Powell says strong economy could require rate hikes: 'Inflation is still too high'

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2 years ago

October 30, 2023

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The US economy’s strength and continued tight labor markets could warrant further Federal Reserve interest rate increases, Fed Chair Jerome Powell said on Thursday in remarks that appeared to push back against market expectations that the central bank’s rate hikes had reached an end.

“We are attentive to recent data showing the resilience of economic growth and demand for labor. Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said in remarks to the Economic Club of New York.

For inflation to durably return to the Fed’s 2% target, it “is likely to require a period of below-trend growth and some further softening in labor market conditions,” Powell said.

Since the Fed began raising interest rates in March of 2022 the unemployment rate has varied little from the current 3.8%, below the level most Fed officials feel is noninflationary, and overall economic growth has generally remained above the 1.8% annual growth rate Fed officials see as the economy’s underlying potential.

The Fed is “proceeding carefully” in evaluating the need for any further rate increases, Powell said, likely leaving intact current expectations that the Fed will leave its benchmark policy rate steady at the current 5.25% to 5.5% range at the upcoming Oct. 31-Nov. 1 meeting.

There is evidence the labor market is cooling, Powell said, with some important measures approaching levels seen even before the pandemic.

Powell also noted a number of fresh “uncertainties and risks” that need to be accounted for as the Fed tries to balance the threat of allowing inflation to rekindle against the threat of leaning on the economy more than is necessary.

Those include new geopolitical risks to the economy from the “horrifying” attack on Israel by the Palestinian militant Hamas group, Powell said.

“Our institutional role at the Federal Reserve is to monitor these developments for their economic implications, which remain highly uncertain,” Powell said. “Speaking for myself, I found the attack on Israel horrifying, as is the prospect for more loss of innocent lives.”

He also noted recent market-driven increases in bond yields that have helped to “significantly” tighten overall financial conditions.

“Persistent changes in financial conditions can have implications for the path of monetary policy,” Powell said, with higher market-based interest rates, if sustained, doing the same job as Fed rate increases.

But the Fed chair also voiced what has become a lingering theme at the central bank: That despite steady progress on lowering inflation, the battle isn’t over, with further rate increases still a possibility and the duration of tight monetary conditions still to be determined.

“Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said, citing the progress made since inflation peaked last year but also noting that one of the Fed’s main measures of inflation remained at 3.7% through September, nearly twice the central bank’s target.

“We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters,” Powell said. “The path is likely to be bumpy and take some time…My colleagues and I are united in our commitment to bringing inflation down sustainably to 2%.”

The weeks since the Fed’s September meeting have been unusually turbulent, with worries about regional war in the Middle East rising and bond markets driving market interest rates higher, tightening the financial conditions faced by businesses and households somewhat independent of the Fed.

Data since the Fed’s last meeting also has shown US job growth reaccelerating unexpectedly, retail sales defying predictions of a slowdown and varying measures of prices offering inconsistent signals about whether inflation is on track to return to the Fed’s 2% target in a timely manner.

Powell’s appearance comes less than 48 hours before the beginning of the traditional quiet period ahead of the rate-setting Federal Open Market Committee’s meeting on Oct. 31-Nov. 1. While a handful of other Fed officials have appearances later on Thursday and Friday before blackout begins on Saturday, it is Powell’s remarks that will set the tone for policy expectations heading into that meeting.

Should they leave rates unchanged in two weeks as is now widely expected, it would mark the first back-to-back meetings with no rate increase since the Fed kicked off its hiking campaign in March 2022.

A Reuters poll of more than 100 economists published on Wednesday showed more than 80% expect no rate hike at the next meeting, and most also believe the Fed is done with rate hikes even though a majority of policymakers at their September meeting projected one more quarter-point increase was likely to be needed by year end.

Many in the poll offered the caveat that if progress on inflation stalls out or reverses, the Fed would not hesitate to resume raising rates.

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Cyclones name WSU’s Rogers to replace Campbell

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1 hour ago

December 6, 2025

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Cyclones name WSU's Rogers to replace Campbell

Max OlsonDec 5, 2025, 09:09 PM ET
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- Covers the Big 12
- Joined ESPN in 2012
- Graduate of the University of Nebraska

Washington State coach Jimmy Rogers has agreed to a six-year deal to become the next coach at Iowa State, the school announced Friday.

Iowa State athletic director Jamie Pollard moved quickly to replace departing coach Matt Campbell, who agreed to an eight-year deal to take over Penn State on Friday, and landed Rogers, a proven winner at the FCS level who just concluded his first regular season at Washington State.

“Jimmy Rogers is a rising star in college athletics who has very strong ties to the Midwest both as a player and as a coach,” Pollard said in a statement. “He has been on my short-list ever since the first time I met him. He immediately impressed me with his interest in Iowa State University and told me during our first visit several years ago that he wanted to be the next head coach at Iowa State.

“Since our initial meeting, I have stayed in close contact with him and have been very impressed with his work ethic and understanding of what it takes to be successful at Iowa State,” Pollard added. “He is a proven winner who has demonstrated throughout his career that he will fit our culture.”

Rogers, 38, has a 33-9 record over three seasons as a head coach. He went 6-6 in his debut season at Washington State after overseeing a significant roster rebuild following the departure of coach Jake Dickert to Wake Forest.

“My family and I are excited to be joining the Iowa State University community and the Cyclone football program,” Rogers said in a statement. “Iowa State has been one of the nation’s top programs for the last decade and we look forward to building upon its upward trajectory. I’m extremely grateful for the opportunity that Jamie Pollard has given me to lead the Cyclones.”

Rogers previously spent 12 years at South Dakota State and led his alma mater to an FCS national championship in 2023 with a 15-0 season in his first year as the Jackrabbits’ head coach after taking over for longtime coach John Stiegelmeier.

Rogers carried a 29-game win streak into his second year as coach and achieved a No. 3 finish in 2024 with a run to the FCS playoff semifinals and a 12-3 season.

The Jackrabbits also won the FCS national championship in 2022 after Rogers was elevated to being the team’s sole defensive coordinator, and they played for another FCS title in 2020.

Campbell, the winningest coach in Iowa State history with 72 victories, led the Cyclones to eight winning seasons during his decade at the helm and two appearances in the Big 12 championship game.

The Cyclones went 8-4 this season and are awaiting their bowl selection on Sunday.

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Cool it! JMU AD scolds fans for throwing snowballs

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1 hour ago

December 6, 2025

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Cool it! JMU AD scolds fans for throwing snowballs

Associated Press

Dec 5, 2025, 08:49 PM ET

HARRISONBURG, Va. — James Madison athletic director Matt Roan used the public-address microphone to implore Dukes fans to stop throwing snowballs onto the field during the Sun Belt Conference championship game against Troy on Friday night, warning that their actions could cost JMU a penalty.

Roan’s address to the crowd followed an incident that affected the game.

With 4:30 left in the first quarter, Troy’s Evan Crenshaw was nearly hit by a snowball while punting from the end zone with the JMU student section behind him. Crenshaw shanked a 26-yard punt that helped set up the Dukes’ first score, a 40-yard field goal.

Fans in the student section began throwing snowballs during pregame warmups, when the Dukes’ marching band got pelted. They kept it up for most of the first half, despite repeated warnings over the PA system.

Harrisonburg received about 1½ inches of snow Friday, its first measurable snowfall of the season.

No. 19 JMU had an outside shot at making the College Football Playoff field with a win over Troy and a loss by No. 16 Virginia to Duke in Saturday’s Atlantic Coast Conference championship game.

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No. 1 recruit DT Lamar Brown signs with LSU

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1 hour ago

December 6, 2025

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No. 1 recruit DT Lamar Brown signs with LSU

Eli LedermanDec 5, 2025, 04:18 PM ET
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LSU and coach Lane Kiffin closed a busy early signing period with a bang Friday, officially securing the signature of defensive tackle Lamar Brown, ESPN’s No. 1 overall 2026 recruit.

Brown, a 6-foot-5, 285-pound defender from Erwinville, Louisiana, signed his letter of intent on the final day of the three-day period, the program announced, formally joining Kiffin and the Tigers as the program’s first No. 1 overall addition since Leonard Fournette in 2014.

Committed to the program since July, Brown was not initially expected to sign this week following meetings between Brown’s representatives and members of the LSU staff Tuesday.

While Brown remained verbally committed to the program, sources told ESPN that his camp harbored reservations over Kiffin’s to-be-completed coaching staff. Uncertainty hanging over the futures of Tigers interim coach Frank Wilson and defensive coordinator Blake Barker marked a particular concern for Brown, who attends high school on the LSU campus and developed close relationships with the program’s previous staff during his recruitment.

As of Friday afternoon, the Tigers have not publicly announced plans for the program’s defensive staff. The statuses of Wilson and Baker, a reported candidate for multiple head coach openings across the country, remain unclear, too. But according to ESPN sources, Brown and the Tigers progressed toward his signing through talks across Wednesday and Thursday, culminating in the program officially landing his signature Friday afternoon.

Within an impressive Tigers defensive class in 2026, Brown was not alone in initially holding off on signing this week before ultimately submitting the official paperwork.

LSU officially announced the signing of ESPN 300 defensive tackle Richard Anderson (No. 90 overall) on Thursday after questions swirled over his signature on the opening day of the signing period. Top 60 defensive linemen Deuce Geralds (No. 39) and Trenton Henderson (No. 60) each pushed their signings to Friday. Henderson, amid late flip efforts from Auburn and Florida State, gave the Tigers his signature Friday morning. Geralds, ESPN’s No. 2 defensive tackle in 2026, followed in the afternoon, minutes before the program announced Brown’s signing.

For Kiffin, who officially arrived Sunday, Brown’s signature closes LSU’s class of ESPN 300 additions and marks a strong finish to a hectic first week on the recruiting trail with the Tigers.

Uncertainty surrounding Brown and the program’s top defensive pledges hung over early-week commitments from wide receiver Brayden Allen and former Ole Miss pledges J.C. Anderson (No. 165 in the ESPN 300) and Ryan Miret. Pass catcher Corey Barber, another ex-Rebels commit, also signed with the Tigers on Wednesday. LSU also lost five commitments following Kiffin’s arrival, headlined by safety Dylan Purter (No. 266), who flipped to Florida on Thursday.

Kiffin & Co. took some big swings, as well. Sources tell ESPN that the Tigers made late efforts to flip USC tight end signee Mark Bowman (No. 29 overall) and four-star South Carolina quarterback signee Landon Duckworth (No. 186). LSU also attempted to sway No. 1 wide receiver Chris Henry Jr., who affirmed his pledge to Ohio State and signed Friday.

With Brown officially in the fold, the Tigers will close the early signing period with the nation’s No. 14 signing class in ESPN’s latest class rankings for the cycle.