Home » Economy » Powell promises the Fed is 'strongly committed' to fighting inflation with more rate hikes
Powell promises the Fed is 'strongly committed' to fighting inflation with more rate hikes
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Federal Reserve Chairman Jerome Powell on Wednesday told congressional lawmakers the U.S. central bank is committed to crushing the hottest inflation in 40 years, promising to raise interest rates until there is "compelling evidence" that prices are falling.
Powell is testifying before the Senate Banking Committee on Wednesday, followed by an appearance before the House Financial Services Committee on Thursday – part of his regular, semi-annual update on monetary policy.
"At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so," Powell said in prepared remarks. "We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses."
His testimony comes just one week after the Fed voted to raise interest rates by 75 basis points for the first time since 1994, underscoring just how serious policymakers are about tackling the inflation crisis after a string of alarming economic reports. The move puts the key benchmark federal funds rate between 1.50% and 1.75%, the highest since the pandemic began two years ago.
INFLATION TIMELINE: MAPPING THE BIDEN ADMIN'S RESPONSE TO RAPID PRICE GROWTH