Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee yesterday, where he was questioned on the state of the economy and the Fed’s plan to strengthen the banking system.
On the state of the economy, Powell noted that even though it has moderated, inflation is still running high.
“The process of getting inflation back down to 2 percent has a long way to go,” said Powell. “It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation.”
He pointed to positives in the job market, highlighting an increase in labor force participation, easing wage growth, and job vacancies lowering as signs the job market is balancing.
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