Business

Central-bank officials attending the annual Jackson Hole symposium conveyed a clear, hawkish message on interest rates. Jerome Powell, chairman of the Federal Reserve, said he expected the Fed would raise rates throughout next year. Officials from the European Central Bank talked of “sacrifice”, and said that the lessons of the 1970s showed there should be no easing of monetary tightening at the first signs of a dip in inflation. The ecb is expected to lift rates at its next meeting on September 8th. The central bankers warned that higher rates were necessary to tame inflation, even if they lead to recession.