US has ‘long way to go’ to reduce inflation, Fed chair tells Congress

Jerome Powell on Capitol Hill in Washington DC on 7 March. Photograph: REX/Shutterstock

Federal Reserve chair Jerome Powell told Congress on Tuesday that the central bank will likely continue to increase interest rates in coming months as bringing down inflation “has a long way to go and is likely to be bumpy”.

“The ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said, delivering the Fed’s semiannual monetary policy report to the Senate’s banking committee. “My colleagues and I are acutely aware that high inflation is causing significant hardship, and we’re strongly committed to returning inflation to our 2% goal.”