Jerome Powell's, Chairman of the Federal Reserve System (Fed), prepared testimony for delivery to the House Financial Services Committee, showed that the Fed Chairman will repeat that nearly all FOMC participants expect it will be appropriate to raise interest rates "somewhat further" by year-end.

Key takeaways

"Process of getting inflation back down to 2% has a long way to go."

"Seeing some effects of monetary tightening but will take time for full effects of monetary restraint to be realized, especially on inflation."

"Labor market remains very tight, but nominal wage growth showing signs of easing, job vacancies have declined this year."

"Longer-term inflation expectations appear to remain well anchored."

"Tighter credit conditions are likely to weigh on economic activity, hiring and inflation but extent remains uncertain."

"We will continue to make our decisions meeting by meeting based on incoming data, implications for outlook and balance of risks."

"We remain committed to bringing inflation back down to our 2% goal, keep inflation expectations well anchored."

"Reducing inflation is likely to require period of below-trend growth, some softening of labor market conditions."

"US banking system is sound and resilient."

"Recent bank failures and resulting financial stress have highlighted importance of having appropriate rules and supervisory practices for banks of this size."

"Committed to addressing these vulnerabilities to make for a stronger and more resilient banking system."

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