Fed's Powell Sees Gradual Rate Hikes as Best Path 'For Now'

The Federal Reserve's semiannual monetary policy report highlights the goals of maximum employment and price stability. The report discusses the current economic situation, noting a strong job market and rising inflation. Economic growth is supported by consumer spending and business investment. The Federal Open Market Committee (FOMC) expects continued economic strength and aims to maintain inflation near 2%. The report outlines recent monetary policy adjustments, including interest rate increases and reductions in securities holdings, to support economic stability.

What are the main goals that Congress has set for monetary policy?

How has the job market changed since the last testimony in February?

What factors have contributed to the recent economic growth in the US?

What role does the payment of interest on balances held by banks play in monetary policy?

What challenges does the Federal Reserve face in maintaining inflation near the 2% target?

What is the significance of the 2% inflation objective set by the Federal Reserve?

How does the Federal Reserve plan to adjust monetary policy in response to economic conditions?