Jerome Powell says Fed policy must address range of plausible outcomes

Powell said the US recovery is stronger than those of other major economies, thanks in part to more robust fiscal support

With the US economy growing strongly and supply-demand imbalances poised to persist in the near future, policymakers need to be ready to respond to the possibility that inflation may not recede in the second half of next year as expected, Federal Reserve Chair Jerome Powell said on Wednesday.

Powell, in his second day of testimony in Congress, said policy will need to adapt as officials seek to bring millions of Americans back to work while also ensuring that the recent surge in inflation does not become entrenched.

"Almost all forecasters do expect that inflation will be coming down meaningfully in the second