"[I]n light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face," Powell told the Senate Banking Committee hearing.
Storyboard
High inflation is no longer only risk for U.S. economy: Fed chair Powell
Federal Reserve chair Jerome Powell told lawmakers that a weakening labor market is just as much a risk to the economy as high inflation.
The big picture
In opening remarks, Powell told Congress the labor market has returned to its pre-pandemic state, calling it "strong, but not overheated."
State of play
Powell appeared before lawmakers at a tricky moment for the economy. Inflation is well below its peak, but still higher than the Fed's 2% target.
Go deeper
Read more from Courtenay Brown, co-author of the Axios Macro newsletter that allows you to stay ahead of the curve on how the economy, policy and markets collide.
