Fed Chairman Powell reaffirms hawkish stance, vows to continue aggressive inflation fight

'We need to act right now': Fed Chairman Powell vows to continue aggressive inflation fight

What the Fed Chair's warning about economic 'pain' means for AmericansReplayMore Videos ...

What the Fed Chair's warning about economic 'pain' means for Americans 01:28 (CNN)At a think tank conference Thursday, Federal Reserve Chairman Jerome Powell reiterated his pledge to stay the course on the central bank's aggressive inflation-busting policy.

"The Fed has, and accepts, responsibility for price stability," he said at the Cato Institute's 40th Annual Monetary Conference. "We need to act right now — forthrightly, strongly." As he had at his uncharacteristically brief speech at the Fed's annual Jackson Hole symposium last month, Powell reaffirmed a commitment to a hawkish policy stance. The Fed chair is trying to temper expectations among consumers and businesses that prices would continue to rise, which could trigger changes in spending, earning and investing habits that could be hard to undo.Powell's concern that people could habitually come to expect inflation was echoed by Fed vice chair Lael Brainard at a banking policy conference speech in New York on Wednesday. "It is especially important to guard against the risk that households and businesses could start to expect inflation to remain above 2% in the longer run," she said.Investors overwhelmingly expect a 75 basis-point hike at the Fed's upcoming policy-setting meeting later this month as it digested Powell's remarks, his last comments before the quiet period ahead of the meeting. Read MoreThis story is developing and will be updated.

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