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 challenges does the Federal Reserve face in restoring price stability?

What is the significance of maintaining a restrictive stance of monetary policy?

How does the Federal Reserve plan to achieve its maximum employment and price stability goals?