Powell Concedes That Federal Reserve Underestimated Inflation

Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee hearing, Thursday, March 3, 2022 on Capitol Hill in Washington. Tom Williams, Pool via AP, File

The Federal Reserve underestimated rampant price inflation as the U.S. economy reopened, Chairman Jerome Powell told lawmakers on the House Financial Services Committee on June 23.

“We did underestimate it. With the benefit of hindsight, clearly, we did,” Powell said during his second day of testimony before Congress.