Fed Chair Powell's testimony

Senate Banking Committee

Federal Reserve Chair Jerome Powell delivered his semiannual testimony before the Senate Banking Committee on February 11, 2025, as part of the Monetary Policy Report to Congress. Key highlights include:

Economic Overview

• Growth and Employment: Powell noted that the U.S. economy grew by 2.5% in 2024, driven by strong consumer spending. The labor market remains solid, with an unemployment rate of 4%, though it has cooled from prior highs.

• Inflation: Inflation has moderated but remains slightly above the Fed's 2% target. Powell emphasized the Fed's commitment to bringing inflation sustainably to this goal.

Monetary Policy

• The Federal Open Market Committee (FOMC) maintained its federal funds rate target at 4.25%-4.5% during its January 2025 meeting, following a series of rate cuts in 2024. Powell reiterated that current monetary policy is "well-positioned" to balance risks to employment and price stability.

• Powell stressed that future policy decisions will be data-driven, particularly in ligh…