Top officials from the world’s biggest central banks coalesced around a simple message in Jackson Hole this weekend: They are ready to follow through with higher interest rates, even if it does some damage.
Fed Chair Jerome Powell told the annual gathering of monetary policy makers that the road ahead will “bring some pain to households and businesses” in the U.S., an “unfortunate cost of bringing down inflation.”
Isabel Schnabel, a top European Central Bank official, said she and her colleagues had “little choice” but to continue tightening even if Europe’s economy tips into recession, which is becoming increasingly likely.
