Powell testifies that inflation is ‘soft’ in semiannual report to Congress
Powell testified on Tuesday that inflation and employment remain well below the Fed’s targets, meaning easy monetary policy is likely to stay in place.
“The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved,” the Fed chief said in prepared remarks to the Senate Banking Committee.
He added that the Fed is “committed to using our full range of tools to support the economy and to help ensure that the recovery from this difficult period will be as robust as possible.”
— Thomas Franck, Jeff Cox
Markets watching Powell speech for clues about policy
Investors were watching closely Tuesday as Federal Reserve Chairman Jerome Powell spoke to the Senate Banking Committee.
Markets are looking for observations on the future path of interest rates and the central bank leader’s views on the recent rise in bond yields. Powell’s presentation will start with prepared remarks, followed by a Q&A session with committee members.
The appearance is part of the congressionally mandated semiannual report on monetary policy.
— Jeff Cox