Fed's Powell: Inflation needs more attention now than employment

Federal Reserve Chair Jerome Powell on Tuesday said the U.S. central bank needs to focus more on high inflation now than on full employment as it gauges which of its two mandates is further from its goal.

"I'd say now it's inflation" that requires more attention from policymakers, Powell said in response to a senator's question during his renomination confirmation hearing before the Senate Banking Committee.

The Fed has a congressionally mandated dual mandate to pursue a monetary policy that fosters price stability and maximum employment. Inflation is running at more than twice the Fed's target while unemployment is back to near its pre-pandemic level.