Accelerating US inflation sets markets on edge

JEROME Powell kicked off his customary post-FOMC (Federal Open Market Committee) meeting press conference in May this year by directly addressing the American people.

“Inflation is much too high, and we understand the hardship it is causing, and we’re moving expeditiously to bring it back down,” the Federal Reserve chairman said, adding that the US central bank has the tools to get the job done.

“The economy and the country have been through a lot over the past 2 years and have proved resilient. It is essential that we bring inflation down if we are to have a sustained period of strong labour market conditions that benefit all,” he said.