Fed's Powell: Inflation Developments Warranted Bigger Hike

The Federal Reserve is committed to reducing high inflation and restoring price stability for American families and businesses. Recent economic developments show a tight labor market and high inflation, prompting the Fed to raise interest rates and reduce its balance sheet. The Fed projects moderate GDP growth and a slight rise in unemployment over the next few years. Inflation remains above target due to supply constraints and geopolitical factors. The Fed's monetary policy aims to bring inflation back to 2% while maintaining maximum employment. Future rate increases will depend on economic data and conditions.

What commitment does the Federal Reserve express regarding inflation?

How has the labor market changed over the past few months according to the Fed?

What are the projected unemployment rates for the next few years?

What factors are contributing to the current inflationary pressures?

What actions is the Federal Reserve taking to address inflation?

How does the Fed plan to balance employment and price stability?

What is the Fed's long-term goal for inflation, and how does it plan to achieve it?