---
title: "Will The Fed Raise Rates Again? Powell Remains Fixated On 2% Inflation Target"
url: https://diffcoin.com/will-the-fed-raise-rates-again-powell-remains-fixated-on-2-inflation-target/
description: "The market now predicts that another rate hike will occur before the end of the year."
published: 2023-08-26
updated: 2023-08-26
author: "Mila"
site: "Diffcoin"
---

# Will The Fed Raise Rates Again? Powell Remains Fixated On 2% Inflation Target

The likelihood of another Federal Reserve policy rate hike grew stronger on Friday after Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium.

- During the speech, Powell reiterated that the Federal Reserve remains committed to bringing inflation down to 2%, despite some economists suggesting that achieving that target may be difficult.
- “Two percent is and will remain our inflation target,” said Powell. Getting there, he added, will require a “period of below-trend economic growth.”
- So far, the Fed isn’t getting the results it needs, as the economy “may not be cooling as expected,” he continued.
- Earlier this week, popular economist Paul Krugman wrote a piece for the New York Times, arguing that the Fed may want to target 3% inflation instead, arguing that 2% is “probably bad economics.”
- After the speech, the odds of a rate hike at the Fed’s next meeting in September rose to 19%, according to the CME FedWatch tool. Meanwhile, the odds of another hike this year [rose](https://twitter.com/KobeissiLetter/status/1695077794789704141) to 52.1% – a two-month high.
- Rate cuts, which many expect will trigger more investment into crypto and stocks, are not expected until June 2024.

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