FOMC Chairman Jerome Powell is testifying before the Senate Banking, Housing, & Urban Affairs Committee on "The Semiannual Monetary Policy Report to Congress."

Key takeaways

"Higher interest rates are painful, but it's the tool we have to bring down inflation."

"The greatest pain would be if we allowed this high inflation to continue."

"Not at all too late for us to get this job done on inflation."

"Our goal is to achieve 2% inflation while keeping labor market strong."

"Would never take any size of rate hike off the table."

"Will make whatever moves are needed to restore price stability."

"We need compelling evidence inflation coming down, don't have that right now."

"Core PCE has moderated over the course of this year, it's still way higher than it needs to be."

"We need to keep moving until we actually see inflation come down."

"I don't see likelihood of recession as particularly elevated right now."

Market reaction

The US Dollar Index recovered modestly on these comments and was last seen losing 0.35% on the day at 104.05.