Federal Reserve chair says central bank will SLOW interest rises to half a ... trends now BREAKING NEWS: Federal Reserve chair says central bank will SLOW interest rises to half a percent in December in a bid to get back to the 2% inflation target By Morgan Phillips, Political Reporter For Dailymail.Com Published: 18:49 GMT, 30 November 2022 | Updated: 18:55 GMT, 30 November 2022 Viewcomments Federal Reserve chair Jerome Powell indicated Wednesday that the central bank is on track to pare back its rate hike to only half a percent in December, after four straight jumbo 0.75 percent hikes. Ongoing rate increases 'will be appropriate, but 'the time for moderating the pace of rate increases may come as soon as the December meeting,' Powell said in remarks at the Brookings Institution. 'It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,' Powell added, as the Fed works to get record-high inflation back down to its 2 percent goal. He said the overheated labor market still needed to cool further for the Fed to have confidence the nation is on track to get back to 2 percent. 'It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,' Powell added 'It is likely that restoring price stability will require holding policy at a restrictive level for some time. We will stay the course until the job is done.' Powell noted rate hikes have contributed to a slow-down in interest rate-sensitive sectors of the economy like housing, and supply chain snags that have been resolved have also brought down prices. He said the drop in the cost of goods and rent may drag down prices enough to reach their target even if companies don't slow their hiring. 'The labor market … shows only tentative signs of rebalancing, and wage growth remains well above levels that would be consistent with 2% inflation,' Powell said. 'Despite some promising developments, we have a long way to go in restoring price stability.' Inflation for months has ran at highs not seen since the early 1980s. The consumer price index remains at its highest levels in decades after hitting 9.1 percent in June, though it was down to 7.6 percent in October. Core inflation, the Fed's preferred gauge, is at 6.6 percent. The Fed's mandated goal is two-fold - keep inflation running around 2 percent and maximize employment. Under Powell's leadership the Fed for years prioritized full employment with a higher tolerance for inflation. But when Covid supply chain snags and fuel prices sent inflation soaring, the Fed reoriented to fighting high prices. Fed officials lifted their benchmark rate by 0.75 percentage points on November 2 to a range between 3.75 and 4 percent. They had held the rate to near-zero until March. The central bank now must walk a tight line between tamping down prices and triggering a recession. Share or comment on this article: All rights reserved for this news site (dailymail) and under his responsibility