Growth will be slower, the labour market will soften, and households and businesses will feel “some pain” as the Federal Reserve tries to get inflation back to around two per cent, the U.S.’s chief central banker said in a symposium in the resort town of Jackson Hole, Wyo. But he hinted that a third 0.75-point interest-rate hike in a row might not be needed when the Fed makes its next decision in September. Stocks sold off after Powell spoke. (The Logic)

Talking point: The United States is dealing with higher inflation than Canada is, with rates of 9.1 and 8.5 per cent in June and July there versus 8.1 and 7.6 per cent here. The only thing worse than fighting inflation would be not fighting it, Powell said, because “without price stability, the economy does not work for anyone.” He cited his predecessors Paul Volcker in saying the Fed needs to break any expectation that high inflation is here to stay, and Alan Greenspan in saying the goal should be to keep inflation low enough that people don’t need to think about it.