Federal Reserve Could Ease Policy Before Inflation Reaches 2 Percent, Powell Says

Powell participates in his second day of testimony on Capitol Hill.

Chair of the Federal Reserve Jerome Powell speaks during a House Financial Services Committee hearing on the Federal Reserve’s Semi-Annual Monetary Policy Report at the U.S. Capitol in Washington on July 10, 2024. Bonnie Cash/Getty Images

The U.S. central bank won’t wait until inflation returns to 2 percent before easing monetary policy, Federal Reserve Chair Jerome Powell told lawmakers in his second day of testimony on Capitol Hill on July 10.

Appearing before the House Financial Services Committee, Mr. Powell confirmed that policymakers don’t have a “particular number” that inflation needs to touch before cutting interest rates.