Inflation part of Fed rate hike test likely met in coming meetings: Powell

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Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell testify before a Senate Banking Committee hybrid hearing on oversight of the Treasury Department and the Federal Reserve on Capitol Hill in Washington

(Reuters) – U.S. Federal Reserve Chair Jerome Powell on Tuesday said that in coming months, the economy probably will have cleared the bar the Fed has set for raising interest rates as far as inflation goes, though it would still need to see full employment before it would commence liftoff.

“I would say, this is a decision for the committee to make, but I think the committee, I think in coming meetings we will wind up saying that those inflation conditions have been met,” Powell told the Senate Banking Committee. The Fed has said it will not raise rates until the economy has reached full employment and inflation is at 2% and looks likely to exceed that level moderately for some time.

(Reporting By Ann Saphir; Editing by Chizu Nomiyama)


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