European Central Bank (ECB) President Christine Lagarde speaks to the media following the Governing Council's monetary policy meeting at the ECB headquarters in Frankfurt, Germany, July 27, 2023.
"Two percent is and will remain our inflation target," Powell said in his keynote address.
After aggressive interest rate increases by the Fed and the ECB, among others, inflation has fallen but has not yet reached the 2% goal in either Europe or the United States.
Increasing the target could undermine efforts to anchor inflation expectations, she said, and anchored expectations are key to keeping inflation constrained.
Reporting by Ann Saphir, Howard Schneider and Balazs Koryani; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.
Persons:
Christine Lagarde, Kai Pfaffenbach, JACKSON, Jerome Powell, Powell, Lagarde, Ann Saphir, Howard Schneider, Balazs Koryani, Andrea Ricci
Organizations:
European Central Bank, ECB, REUTERS, U.S . Federal Reserve, Federal Reserve Bank of Kansas, Fed, Thomson
Locations:
Frankfurt, Germany, , Wyoming, Jackson Hole , Wyoming, Federal Reserve Bank of Kansas City, Europe, United States