Powell's Testimony: No Urgency to Adjust Interest Rates, 2% Inflation Remains the Target

ChainCatcher news, according to Jinshi reports, Federal Reserve Chairman Powell attended a hearing of the Senate Committee on Banking, Housing, and Urban Affairs, delivering his semiannual monetary policy testimony and answering questions from lawmakers. Key points from Powell's testimony include:

• Inflation has significantly approached the long-term target of 2%, although it remains slightly high. He is closely monitoring various risks under the dual mandate.
• Recent data shows that economic activity continues to expand at a robust pace.
• A wide range of indicators suggest that the labor market is overall balanced and does not pose significant pressure on inflation.
• The Federal Reserve will continue to reduce the size of its securities holdings.
• The restrictiveness of monetary policy has significantly decreased, and the economy remains strong, so there is no need to rush to adjust the policy stance.
• The FOMC will comprehensively assess the latest data, changes in the economic outlook, and the balance of risks. As the economy develops, the Federal Reserve will adjust its policy stance to maximize employment and ensure price stability.