Fed will not raise rates on inflation fears alone, says Jerome Powell

Fed will watch broad set of labor market data, says Powell

Federal Reserve Chair Jerome Powell on Tuesday reaffirmed the US central bank's intent to encourage a "broad and inclusive" recovery of the job market, and not to raise interest rates too quickly based only on the fear of coming inflation.

"We will not raise interest rates preemptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances," Powell said in a hearing before a US House of Representatives panel.

Recent price increases "don't speak to a broadly tight economy" that would require higher interest rates, Powell said, but come from categories "directly affected