Fed Chair Predicts Rough Ride Ahead for US Economy

The Federal Reserve Chair told members of Congress it could be a "bumpy" ride as they continue to try and get inflation under control. 

Chair Jerome Powell said the Fed's goal was still to get inflation down to 2%. The Fed has raised interest rates multiple times over the past year to try and help cool inflation, and Powell says that may need to happen at a faster rate because inflation is still out of control. 

"If the totality of the data were to indicate that faster tightening is warranted, we'd be prepared to increase the pace of rate hikes," Powell told the U.S. Senate. 

Consumer spending and economic data have both been stronger than expected start to 2023, but inflation has remained stubbornly high. The Fed's outlook for the remainder of the year projects an unemployment rate of around 4.6% by the end of 2023. That number is more than a full point higher than what it is now.