Economics

Powell Makes Case for Fed Curbing Inflation While Doing No Harm

Fed chair says central bank on path to normalize policy
Powell looks set to win another term atop the central bank

WATCH: Powell says the Fed will use “tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched.”Source: Bloomberg

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By Rich Miller and Craig Torres

January 11, 2022 at 10:41 PM UTC

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Federal Reserve Chair Jerome Powell sought to reassure lawmakers and investors on Tuesday that the central bank can pull off the tricky task of bringing down four-decade high inflation without damaging the U.S. economy.

In a 2-1/2 hour congressional confirmation hearing that was notably free of rancor, Powell said the Fed was on course to begin raising interest rates from near zero and reducing its mammoth $8.8 trillion balance sheet.