Powell Says US Economy Can Handle Tighter Fed Policy

The Fed is committed to reducing inflation and restoring price stability for American families and businesses. Current inflation rates are above the target, with economic activity showing mixed signals. The labor market remains tight, with high job vacancies and wage growth. The Fed has raised interest rates and plans to reduce its balance sheet to address inflation. Future policy decisions will depend on economic data, with a focus on achieving a 2% inflation goal. The Fed aims to maintain transparency and adapt to economic changes while minimizing uncertainty.

What is the Federal Reserve's commitment regarding inflation?

How does high inflation affect American families and businesses?

What measures is the Fed taking to address inflation?

What are the current economic conditions mentioned in the text?

How has the labor market been described in the context of inflation?

What challenges does the Fed face in achieving its goals?

What is the Fed's long-term goal for inflation?