Federal Reserve Chair Powell Testifies on Capitol Hill

Federal Reserve Board Chair Jerome Powell testified in front of the Senate Banking Committee and House Financial Services Committee at the end of June. As expected, the hearings focused primarily on inflation, price stability, the job market, and economic conditions broadly. In his opening remarks, Chair Powell noted “we anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy.” He noted the Fed has the appropriate tools to lower and stabilize inflation including easing the Fed balance sheet and room to adjust interest rates accordingly. However, Powell acknowledged that achieving a soft landing "is going to be very challenging" and that a recession is possible. "It's not our intended outcome at all, but it's certainly a possibility," Powell said. Several Members of Congress noted concern with consolidation in certain industries such as oil companies, meat-packing companies, and the shipping industry, among others, that impact prices.

Click here to read the June 2022 Monetary Policy Report.