Woofun AI reports that Federal Reserve Chairman Jerome Powell reaffirmed the central bank's commitment to its 2% inflation target during Tuesday's testimony, while declining to offer forward guidance on interest rates. Powell emphasized that the Fed possesses the necessary tools to restore price stability and will reexamine its inflation framework to better understand underlying drivers.

Powell stated that focusing on core responsibilities helps distance the central bank from politics. He noted that newly formed working groups remain in the research phase, with findings to be shared transparently with the public. Regarding balance sheet policy, he clarified it as a monetary tool requiring advance communication for any adjustments. When questioned about potential political intervention, Powell affirmed his duty to uphold monetary policy independence.