Washington, D.C. – Federal Reserve Chair Jerome Powell delivered his semi-annual testimony on monetary policy to Congress, emphasizing the importance of Fed independence in decision-making.

Powell defended the central bank’s autonomy in the face of increasing political pressure, stating that political interference could undermine the Fed’s ability to make unbiased decisions. He reiterated the Fed’s commitment to achieving its dual mandate of maximum employment and stable prices.

During his testimony, Powell also addressed concerns about the recent rise in inflation, attributing it to temporary factors such as supply chain disruptions and pent-up demand. He reassured lawmakers that the Fed is closely monitoring the situation and is prepared to take action if necessary.

In response to questions from legislators, Powell expressed confidence in the economic recovery but acknowledged the challenges posed by the ongoing COVID-19 pandemic. He highlighted the need for continued support from both monetary and fiscal policy to ensure a strong and sustainable recovery.

Powell’s testimony comes at a critical time for the Fed, as it grapples with the task of navigating an uncertain economic landscape while maintaining its independence from political pressures. His remarks underscored the Fed’s commitment to fulfilling its mandate and supporting the economy through policy measures.

In conclusion, Powell’s testimony served as a reminder of the importance of Fed independence in shaping monetary policy decisions. As the central bank continues to navigate the challenges posed by the pandemic and inflationary pressures, maintaining its autonomy will be crucial in ensuring the stability and effectiveness of its policies.