Washington, D.C. – Federal Reserve Chair Jerome Powell testified before Congress, addressing concerns about the U.S. economy. Powell noted that high inflation is no longer the only risk facing the economy, highlighting a shift in focus for the Fed.

During his testimony, Powell emphasized that the era of near-zero interest rates may be coming to an end. This signals a potential change in the Fed’s monetary policy, which has been instrumental in supporting the economy during the COVID-19 pandemic.

Despite the positive economic indicators, Powell also warned about the risks of keeping interest rates elevated for too long. He cautioned that prolonging this situation could have negative consequences for the job market and overall economic growth.

Powell’s remarks come at a time when Treasury yields are relatively stable, reflecting the cautious stance of investors amid uncertainty about the Fed’s future actions. The market is closely watching for any signals from the Fed regarding potential rate cuts in the near future.

The Fed Chair’s comments highlighted concerns about the slowing job market, suggesting that the Fed may be considering additional measures to support employment. This underscores the challenges facing the U.S. economy as it navigates the post-pandemic recovery and shifts towards a new phase of growth.

Overall, Powell’s testimony provides valuable insights into the Fed’s current thinking and its approach to guiding the economy through the evolving landscape of risks and opportunities. As the economy continues to recover, the Fed remains vigilant in its efforts to support sustainable growth while navigating potential obstacles along the way.