Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed is determined to fight inflation with more sharp interest rate hikes, which will likely bring some pain to the economy. This echoes warnings from earlier in the week, when Federal Reserve Chairman Jerome Powell warned Tuesday the U.S. could feel “some pain” as the central bank raises interest rates to fight inflation, insisting the Fed\'s commitment remains firm.

The Fed\'s Resolve: Pain is Coming in the Fight Against Inflation

Federal Reserve Chairman Jerome Powell pledged to cool historically high inflation, but warned that higher interest rates could bring pain to the economy. He reiterated this stance, saying pain would be necessary to quell inflation. Powell and other Fed members have justified this pain by arguing that persistent inflation would make the economy more vulnerable to a messy economic downturn.

What Does "Some Pain" Really Mean?

While Federal Reserve Chairman Jerome Powell on Friday called for more vigilance in the fight against inflation, warning that additional interest rate increases could be yet to come, the specific implications of "some pain" are still being debated. It’s looking increasingly likely that won’t be the case for everyone, but certain sectors and individuals may experience job losses and reduced economic activity as a result of the Fed\'s aggressive monetary policy.