(Bloomberg) — Federal Reserve Chair Jerome Powell said the central bank won’t hesitate to act if needed to contain inflation and help ensure full employment, though the mismatch between supply and demand that’s driven up prices was expected to abate.
“If we have to raise interest rates more over time, we will,” Powell said Tuesday in response to a question at his confirmation hearing at the Senate Banking Committee. “We will use our tools to get inflation back.”
Both Republicans and Democrats have expressed concern that the Fed is over-stimulating the economy with low rates and bond purchases as inflation runs far above officials’ 2% target. U.S. central bankers have been surprised by the persistence of inflation and want to lean against it this year without stalling out growth.
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