Fed Faces Long Road in Balancing Economic Priorities

Fed Chair Jerome Powell addressed the House Financial Services Committee about the Federal Reserve's ongoing quantitative tightening measures, highlighting the substantial progress made but emphasizing the need for caution. Powell discussed the Fed's dual mandate, the recent rise in the unemployment rate, and the importance of getting more positive economic data to justify potential interest rate cuts.

Fed Chair Jerome Powell informed the House Financial Services Committee that the Federal Reserve still has a significant distance to cover in its quantitative tightening measures, despite having reduced its balance sheet by $1.7 trillion.

Powell, on his second day of testimony, emphasized the Fed's dual mandate and recent economic conditions, including the gradual rise in unemployment.

He also highlighted the necessity of obtaining more favorable economic data to consider interest rate cuts.

(With inputs from agencies.)