Fed's Powell reiterates nearly all FOMC members expect 'somewhat' more rate hikes

The head of the US central bank reiterated that the Federal Reserve remained "squarely focused" on its dual mandate of maximum employment and stable prices.

In his semi-annual testimony before the lower chamber of Congress, Jerome Powell went on to say that "nearly all" members of the Federal Open Market Committee believed that it would be necessary to continue raising interest rates "somewhat" more by the end of 2023.

"But at last week's meeting, considering how far and how fast we have moved, we judged it prudent to hold the target range steady to allow the Committee to assess additional information and its implications for monetary policy," the central banker said in prepared remarks for his testimony before the U.S. House of Representatives' Financial Services Committee.

On the current economic situation, Powell said that the labour market remained "very tight", pointing to the average 314,000 per month gain in hiring year-to-date.

And labour demand continued to "substantially exceed" the supply of workers.

Inflation pressures meanwhile had "continued to run high and the process of getting inflation back down to 2 percent has a long way to go."