Fed Chair Powell's Full Statement to Senate Banking Committee

The Federal Reserve presents its semiannual monetary policy report, emphasizing its commitment to reducing inflation to 2%. Despite recent economic improvements, inflation remains high, necessitating continued monetary policy tightening. The labor market is tight, with low unemployment and strong job gains. The Fed plans to maintain a restrictive monetary stance to achieve price stability and maximum employment, while being prepared to adjust interest rates as needed. The report concludes with a commitment to the public mission of achieving economic stability.

What is the Federal Reserve's target inflation rate?

• 4%

• 3%

• 2%

• 1%

What factor partly reversed the softening trends in January's economic data?

• Higher energy prices

• Unseasonably warm weather

• Improved manufacturing output

• Increased consumer spending

What was the core PCE inflation rate over the past 12 months?

• 5.4%

• 4.7%

• 6.2%

• 3.5%

What was the US unemployment rate in January?

• 3.4%

• 4.0%

• 3.8%

• 4.2%

What is one reason for the weakening activity in the housing sector?

• Lower consumer demand

• Higher mortgage rates

• Increased housing supply

• Decreased interest rates

How much has the Federal Reserve raised interest rates over the past year?

• 4.5 percentage points

• 4 percentage points

• 5 percentage points

• 3 percentage points

What is the Federal Reserve's overarching focus in its monetary policy actions?

• Enhancing consumer spending

• Bringing inflation down to 2%

• Increasing GDP growth

• Reducing unemployment