Oil prices dip after US Fed chair Powell warns of economic pain ahead
NEW YORK (Reuters) -Oil prices edged lower in see-saw trading on Friday, as investors digested warnings from the head of the U.S. Federal Reserve that there is no quick cure for inflation.
The U.S. economy will need tight monetary policy “for some time” before inflation is under control, which means slower growth, a weaker job market and “some pain” for households and businesses, U.S. Federal Reserve Chair Jerome Powell said.
Still, data has shown some small decline in inflation, with the Fed’s closely watched personal consumption expenditures price index falling in July to 6.3% on an annual basis, from 6.8% in June. Inflation expectations based on the University of Michigan’s measures also eased in July.
