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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
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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

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.