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Fed Chairman Jerome Powell is set to tell Congress Tuesday that the U.S. central bank will take steps to make sure higher inflation seen over the past year will not be allowed to develop deep roots in the economy.
“We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” Powell will say, according to a copy of his prepared remarks to the Senate Banking Committee released Monday.
The panel is holding a hearing on President Joe Biden’s nomination of Powell for a second four-year term.
Powell said that the Fed knows that high inflation exacts a toll on the poor who see prices rising for their essentials.
“We are strongly committed to achieving our statutory goals of maximum employment and price stability,” Powell said.
