Jerome Powell gambles on inflation easing as Fed waits for more jobs

Federal Reserve Chair Jerome Powell is doubling down on the U.S. central bank’s new policy framework -- saying he won’t entertain interest-rate increases until the labor market heals further, even though inflation could run hot for months.

“There is still ground to cover to reach maximum employment,” Powell told reporters Wednesday. “The inflation that we’re seeing is really not due to a tight labor market.”

His comments came after the Federal Open Market Committee announced it would start slowing its $120 billion of monthly asset purchases at a pace that puts it on track to finish the process by mid 2022.