Fed Chair Powell Addresses Inflation and Interest Rates in Congressional Testimony.

Federal Reserve Chairman Jerome Powell presented the semiannual Monetary Policy Report to Congress, stating that the Fed remains committed to its dual mandate of promoting maximum employment and stable prices. The US economy has slowed down, with activity in the housing sector remaining weak, while the labor market remains tight. Inflation remains well above the 2% goal, and the Fed has significantly tightened the stance of monetary policy. The FOMC decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent and to continue the process of significantly reducing securities holdings. The Fed remains committed to bringing inflation back down to its 2% goal and to keeping longer-term inflation expectations well anchored.