Fed Chair Powell warns of more interest rate hikes

Federal Reserve Chairman Jerome Powell warned Friday that the Fed could order more, sharp interest rate increases to fight off inflation and the fallout could be financially painful to Americans.

"These are the unfortunate costs of reducing inflation," Powell said at the Fed's annual economic symposium, in Jackson Hole, Wyoming. "But a failure to restore price stability would mean far greater pain."

The message appeared to alarm investors, with the Dow Jones Industrial Average closing down more than 1,000 points for the day.

Amid declining gas prices, investors had been hoping for a signal from Powell that the Fed might soon moderate its rate increases later this year, according to the Associated Press.