Powell: The process of bringing inflation back to 2% still has a long way to go

Federal Reserve Chairman Jerome said in testimony prepared for the House Financial Services Committee that the Fed’s battle to bring inflation down to its 2% target has a long way to go.

“My colleagues and I understand the hardships caused by high inflation and remain strongly committed to bringing inflation down to our 2% target,” Powell said. “Inflation pressures continue to mount and the process of returning inflation to 2% still has a long way to go.”

“We have seen the effects of our policy tightening on demand in the most interest rate sensitive sectors of the economy such as housing. It will take some time for the full effects of monetary restraint to materialize, especially on inflation,” he added.