Powell: There is no "risk-free path" for monetary policy

Fed chairperson Jerome Powell pointed out that the central bank was facing a difficult and unusual situation: a weakening labour market, while inflation remained stubbornly high. Typically, a weak labour market would require lower interest rates, while rising inflation would require a more restrictive policy stance. Mr. Powell said monetary policy faced a "situation with bilateral risks and no risk-free path", a factor reflected in the range of views in the summary of the Fed's quarterly economic forecasts.