Fed Chairman Jerome Powell testified before the Senate Banking Committee about the inflation rate and interest rate hikes.
In his speech, Powell said the US economy was developing at its fastest pace and that the labor market had recovered “incredibly.”
Saying that they are extremely determined to achieve the goal of maximum employment and price stability, Powell said, “Monetary policy should have a broad and far-sighted perspective and keep up with changing economic conditions.”
Powell explained that they have updated the monetary policy framework in the era of low inflation and that the increase in inflation is due to the disorders associated with the pandemic.
Commenting on the rate hike, Jerome Powell said, “If the Fed needs more aggressive rate hikes to cool down inflation, it will do it.”