Federal Reserve chair Jerome Powell says slower economic growth may be needed to conquer stubbornly high inflation. Powell said last week inflation remains too high and that bringing it down to a 2% target level will likely require a slower-growing economy and job market. Retired Ripon College economist Paul Schoofs says he agrees. “He (Powell) used the word surprise,” Schoofs told WFDL news. “…which in the terminology of Powell is a real bold statement. Namely surprised about how strong the economy has continued to be.” Powell cautioned it’s not yet clear whether inflation is on a steady path back to the Fed’s 2% target. Powell’s comments echoed speeches from other Fed officials which have underscored they are grappling with an unusual and unexpected development: inflation is slowing even while economic growth and hiring have been robust.
