Federal Reserve Chair Jerome Powell emphasized the importance of achieving a 2% inflation rate to support the long-term health of the US economy. Before the Senate Banking Committee, Powell acknowledged that high inflation disproportionately affects working families and stressed the need to restore a sustainable 2% inflation rate. While Powell stated that the committee is committed to controlling inflation and believes they are close to achieving its goal, he noted the necessity for further rate hikes. Powell's comments came as part of the Fed's semiannual economic update to Congress, where he reiterated the central bank's focus on reducing inflation despite concerns from Democratic lawmakers about potential impacts on unemployment. The Federal Reserve decided to keep interest rates unchanged after a string of rate hikes, providing a period for evaluating the impact of banking stress and higher borrowing costs. At the same time, projections suggest a potential 50 basis point increase later in the year.