Fed's Powell Sees Gradual Rate Hikes as Economy Strengthens

Powell's testimony highlights a strong economic outlook with plans for gradual Fed rate increases. He emphasizes the robust job market, solid economic growth, and positive business sentiment. Financial conditions have tightened but remain supportive, with fiscal policy now acting as a tailwind. Powell aims to balance avoiding economic overheating with achieving 2% inflation. While inflation and wages are expected to rise, Powell does not address budget deficits, stock market, or interest rates, leaving these topics for committee discussion.

What does Powell say about the job market and its impact on household incomes?

How does Powell describe the current financial conditions?

What are the headwinds that have turned into tailwinds according to Powell?

What does Powell indicate about inflation and its expected trend?

What topics did Powell not comment on during his testimony?