Powell: Inflation Near Target, No Rush to Adjust Policy
1min read Federal Reserve Chairman Jerome Powell testified before the Senate Committee on Banking, Housing, and Urban Affairs on February 12, delivering the semiannual monetary policy testimony and answering lawmakers' questions. Powell emphasized that inflation has largely approached the 2% long-term target, although it remains slightly above. He closely monitors various risks under the dual mandate of maximum employment and price stability.
Powell noted that recent economic data shows activity continues to expand at a solid pace. Broad indicators suggest the overall labor market is in balance and has not exerted significant pressure on inflation. He also reiterated that the Federal Reserve will continue to reduce the size of its holdings of securities.
Powell emphasized that monetary policy restraint has been significantly reduced while the economy remains strong. Therefore, there is no need to rush to adjust the policy stance. The Federal Open Market Committee (FOMC) will comprehensively assess the latest data, changes in economic outlook, and the balance of risks. As the economy evolves, the Federal Reserve will adjust its policy stance to maximize employment and price stability.
