Federal Reserve Chair Jerome Powell has reiterated the central bank's commitment to taming inflation, even as concerns mount about a potential economic slowdown. Speaking at a conference on Wednesday, Powell emphasized that the Fed cannot afford to ignore the risk of persistently high inflation, signaling further interest rate hikes are likely in the coming months.

Powell acknowledged the potential for economic pain as the Fed continues its aggressive tightening cycle. However, he stressed that failing to control inflation would ultimately be more damaging to the economy in the long run. "The longer inflation remains above target, the greater the risk that it becomes entrenched," Powell stated.

The Fed has already raised interest rates multiple times this year, and financial markets widely expect another significant increase at the next policy meeting. These actions aim to cool down demand and bring inflation back to the Fed's 2% target.

The impact of rising interest rates is already being felt across various sectors of the economy, including housing and manufacturing. Some economists worry that the Fed's actions could trigger a recession. However, Powell and other Fed officials maintain that they are committed to achieving a "soft landing," where inflation is brought under control without causing a major economic downturn.

The Fed's dual mandate is to maintain price stability and maximize employment. With the labor market still relatively strong, the Fed appears to be prioritizing the fight against inflation. However, the central bank is closely monitoring economic data and will adjust its policy as needed. The path ahead remains uncertain, but Powell's message was clear: the Fed is prepared to do what it takes to bring inflation under control.