Fed Chair Set to Testify on Capitol Hill

Federal Reserve Chair Jerome Powell will spend extensive time before the House Financial Services Committee March 6, followed by a March 7 appearance before the Senate Banking Committee for hearings on the Federal Reserve’s Semiannual Monetary Policy Report. Lawmakers are expected to focus on the central bank’s efforts on inflation, especially following the Consumer Price Index increase in January, as this will be Powell’s last public appearance before the Fed’s mid-March meeting.

Rep. Patrick McHenry, R-N.C., FSC chair, said the hearing will also center on a Fed plan to boost capital requirements of large U.S. banks, as many Republicans oppose the proposal. Industry attention will be given to Powell’s comments on federal agencies involvement on climate-based goals and how inflation is impacting various sectors of the economy – one of the key factors in rising property/casualty insurance premiums is inflated repair, replacement, and rebuilding costs.