O Federal Reserve is “strongly committed” to controlling inflation, but there is still hope that this can be done without the “very high social costs” involved in previous struggles against inflationary pressures, the Fed chairman said, Jerome Powell this Thursday (8).
During a conference, Powell cited former Fed Chair Paul Volcker’s battle with inflation in the early 1980s, when the US central bank’s monetary policy triggered a recession and the unemployment rate reached 10%.
He claimed that Volcker was trying to eradicate years of rising inflation expectations, and that he “followed several failed attempts” to lower inflation.
“My colleagues and I are strongly committed [em reduzir a inflação]… We think we can avoid the kind of very high social costs that Paul Volcker and the Fed had to put on the line,” he said.
Source: CNN Brasil
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