Federal Reserve Chairman Jerome Powell Testifies Before Senate Banking Committee, Warns of Bumpy Road Ahead to Reaching 2% Inflation Target

Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee on Tuesday, warning that the process of getting inflation back down to the central bank’s target of 2% could be bumpy.

Powell said that the Federal Reserve may have to speed up their interest rate hikes to tame high inflation, which has been rising at a yearly pace of 6.4% according to government data. He also noted that it may take time for Americans to see further relief.

Investors are waiting to see how high the Federal Reserve will hike interest rates and what the state of the US economy is heading towards. Powell’s testimony is expected to provide further insight into these questions.

The Federal Reserve has already implemented a string of large interest rate hikes, but the economy has become seemingly impervious to them. Powell is expected to provide further explanation as to why this is the case.

Powell’s testimony is also expected to provide insight into how the Federal Reserve will handle the current economic situation. Investors are hoping for more clarity on how the Fed will respond to the current economic climate.