Federal Reserve to raise interest rates in order to combat inflation.

Interest rates will continue to climb, according to a speech given by Federal Reserve Chairman Jerome Powell at a conference on Friday, Federal Reserve is dedicated to achieving its 2% inflation target.

Since the Fed’s policy-making arm last met in July, the Fed has seen some encouraging signs inflation is easing. July’s consumer price index rose an annual 8.5%, off the blistering pace of 9.1% in June. And this morning, the Fed’s preferred inflation gauge – the personal consumption expenditures price index – showed a year-over-year rise of 6.3% in July, down from 6.8% in June.

“While the lower inflation readings for July are welcome, a single month’s improvement falls far short of what the Committee will need to see before we are confident that inflation is moving down,” he said. Before its September meeting, the Fed will get another month’s worth of data. August’s consumer price index is due on Sept. 13 and the monthly jobs report on Sept. 2.