Federal Reserve Chairman Jerome Powell said in testimony prepared for delivery to Congress this week that the economy is growing but faces continued threats from the coronavirus pandemic. The central bank leader also highlighted rising inflation pressures that he expects to lessen over time. As the economy recovers from the pandemic, he also pledged continued support from policies the Fed put into place in the early days of the Covid-19 threat.... The Fed has kept its benchmark short-term lending rate anchored near zero and is buying at least $120 billion of bonds each month. But last week's Federal Open Market Committee [...]

St. Louis Federal Reserve President James Bullard told CNBC on Friday that he sees an initial interest rate increase happening in 2022 as inflation picks up faster than previous forecasts had anticipated. That estimate is even quicker than the outlook the broader Federal Open Market Committee released Wednesday that caused a hit to financial markets. The committee's median outlook was for up to two hikes in 2023, after indicating in March that saw no increases on the horizon. Bullard at several points described the Fed's moves this week as "hawkish," or in favor of tighter monetary policy than what has prevailed [...]