Senate committee grills Powell about Federal Reserve’s inflation response
Shannon Longworth: Federal Reserve Chair Jerome Powell is facing skepticism from both sides of the aisle today.
He testified in front of the Senate Banking Committee, answering questions as inflation continues to rage across the country.
Democrats were concerned recent rate hikes would lead to a recession.
Republicans accused the Fed of moving too slowly to begin raising rates — and now must speed up its hikes.
Jerome Powell | Federal Reserve Chair: “We raised the target range for the federal funds rate at each of our past three meetings, resulting in a one and a half percentage point increase in the target range so far this year. The pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy. We will make our decisions meeting by meeting and will continue to communicate our thinking as clearly as possible.”
Shannon Longworth: Powell’s testimony was also notable for an apparent break from the Biden administration’s description of inflation as “Putin’s price hike.”
Powell acknowledged inflation was high even before Russia’s invasion began.