Federal Reserve Chairman Jerome Powell will tell lawmakers Tuesday that the central bank is “strongly committed” to keeping prices stable, as he seeks confirmation for a second four-year term.
Mr. Powell, in prepared remarks to the Senate Banking Committee, will acknowledge the impact that record-high inflation has had on average Americans.
“We know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials like food, housing, and transportation,” Mr. Powell said in his prepared remarks. “We are strongly committed to achieving our statutory goals of maximum employment and price stability.”
He also will say that the economy’s rapid recovery during the COVID-19 pandemic has contributed to “persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation.”
“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” Mr. Powell will say.
Consumer prices have spiked in the past year to their highest levels in four decades. The Fed is expected to raise interest rates in the coming months in an effort to address inflation and a tight labor market.
Mr. Powell was first nominated by then-President Donald Trump, and President Biden has tapped him to remain in the post for another term.
• Dave Boyer can be reached at dboyer@washingtontimes.com.
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