<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Here's what the Federal Reserve's key interest rate hike means for your finances"/><p class="gnt_ar_b_p">The Federal Reserve is committed to bringing inflation down to its 2% goal, which means interest rates will continue to rise, Federal Reserve Chairman Jerome Powell said in a speech at a conference on Friday. But by how much more will depend on incoming data, he said. </p><p class="gnt_ar_b_p">Since the Fed’s policy-making arm last met in July, the Fed has seen some encouraging signs inflation is easing. July’s consumer price index rose an annual 8.5%, off the blistering pace of 9.1% in June. And this morning, the Fed’s preferred inflation gauge – the personal consumption expenditures price index – showed a year-over-year rise of 6.3% in July, down from 6.8% in June. </p><p class="gnt_ar_b_p">But Powell emphasized that one month isn’t a trend and that the labor market continues to be very strong. Higher interest rates, slower growth, and softer labor market conditions would bring down inflation. </p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">“While the lower inflation readings for July are welcome, a single month’s improvement falls far short of what the Committee will need to see before we are confident that inflation is moving down,” he said. </p><p class="gnt_ar_b_p">Before its September meeting, the Fed will get another month’s worth of data. August’s consumer price index is due on Sept. 13 and the monthly jobs report on Sept. 2. </p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p"><strong class="gnt_ar_b_al">Impact on your wallet:</strong><a target="_blank" href="/story/money/2022/07/27/fed-interest-rate-hike-impact-explained/10130044002/" rel="noopener" data-t-l=":b|e|spike click:8|${u}" class="gnt_ar_b_a">Fed's trying to halt inflation with big rate hikes. How this affects debt, stocks, savings</a></p><h2 class="gnt_ar_b_mt">What does Powell’s speech mean for consumers? </h2><p class="gnt_ar_b_p">Consumers should continue to expect more rate increases. As the Fed keeps...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/economy/2022/08/26/jerome-powell-speech-fed-rate-hike-clues/7874384001/">Read more <span>➤</span></a> </div>
