Weekly Extract | Inflationary pressures

Week of May 16-20

Tightening the reins

"What we need to see is clear and convincing evidence that inflationary pressures are easing and inflation is coming down, and if we don't see that, then we will have to consider acting more aggressively." Powell said, speaking Tuesday afternoon.

Consumer prices rose by 8.3% in April from a year earlier and although inflation eased somewhat on an annual basis, details of the report suggested that inflationary price pressures remain intense.

Powell and his colleagues have signaled that they will continue to raise borrowing costs as they attempt to restrain spending and hiring, hoping to balance supply and demand.

At the same time, U.S. retail sales rose a strong 0.9% in April despite elevated prices, but were in line with economists' expectations.