Fed's Powell Stresses Inflation Control, Ready to Tighten Policy if 2% Goal Not Met, Daly Highlights Potential Rate Hikes

Federal Reserve Chairman Jerome Powell emphasized the importance of controlling inflation, stating that the Fed faces risks of raising its benchmark rate too high, potentially derailing the economy, or not raising it high enough, allowing inflation to persist or worsen. Powell acknowledged the uncertainty in achieving the 2% inflation goal and expressed readiness to tighten policy further if necessary. San Francisco Fed President Mary Daly also highlighted the potential need for rate hikes if progress on inflation stalls while the economy grows.