US faces more interest rate rises to cool inflation

The US Federal Reserve chairman has said the central bank will continue to raise interest rates "if appropriate" as inflation remains "too high".

Jerome Powell told an annual gathering of central bankers that the pace of price rises had fallen from a peak.

However, it remains above the Fed's 2% target.

In a speech to the Jackson Hole symposium in Wyoming, Mr Powell said interest rates could rise further and stay higher for longer.

US inflation hit 3.2% in the year to July while the key interest rate is 5.25%.

Mr Powell said: "Although inflation has moved down from its peak—a welcome development—it remains too high.

"We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."