Washington, DC CNN —Additional interest rate hikes are still on the table and rates could remain elevated for longer than expected, Federal Reserve Chair Jerome Powell said Friday. “Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said. “So what does that mean for monetary policy? The Fed chair said higher interest rates are likely pulling on the economy’s reins, implying that r* might not be structurally higher, though he said it’s an unobservable concept. But we cannot identify with certainty the neutral rate of interest, and thus there is always uncertainty about the precise level of monetary policy restraint,” Powell said.

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Persons: Jerome Powell, Powell, ” Powell, ” William English, Jason Furman, ” Organizations: DC CNN, Kansas City, Fed, Financial, Atlanta Fed, National Federation of Independent, Yale University, Fed’s, Governors, CNN, Commerce Department, Index, Harvard Locations: Washington, Jackson Hole , Wyoming