FOMC Chairman Jerome Powell is testifying before the House Financial Services Committee on "Monetary Policy and the State of the Economy."
Key takeaways
"Our tools affect inflation, not necessarily wage inflation."
"Some of these wage increases are substantially bigger than is consistent with 2% inflation."
"Fed isn't looking for new tools."
"A big part of inflation won't be affected by our tools, but a big part of it will be."
"Our tools are blunt but they are the right tools to deal with demand."
"That's a bigger piece than energy and food prices."
"We are not seeking deeper involvement in the economy."
"We are not seeking new tools, though it's up to Congress if it wants to change Fed mandate."
Market reaction
The US Dollar Index edged higher after these comments and was last seen rising 0.2% on the day at 104.38.