U.S. inflation remains too high, Fed prepared to raise rates further: Chair Powell

U.S. Federal Reserve Chair Jerome Powell on Friday said inflation remains too high and the central bank is prepared to raise interest rates further.

"We intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down to our objective," he said in his speech at the annual three-day Jackson Hole symposium in the U.S. state of Wyoming.

"In the upcoming meetings, we are in a position to proceed carefully as we assess the incoming data and the evolving outlook and risks," he added.

Powell said high inflation is a result of "very strong demand" and "pandemic-constraint" supply.

"Process of bringing down inflation still has "a long way to go" even with the more favorable recent macroeconomic reading," he said.

The Fed, since March 2022, has undertaken one of the most aggressive monetary tightening in history to fight record inflation, which soared to a four-decade high of 9.1% in June 2022.

The bank raised interest rates by a total of 425 points in seven hikes last year, which were followed by 25 basis points apiece on Feb. 1, March 22, May 3, and most recently July 26.