Federal Reserve Chair Jerome Powell reiterated that the Fed’s top priority remains bringing inflation back down to its 2% target.

As the US economy faces pressure from slower growth, rising energy prices, and persistent inflation risks, the Fed is maintaining a cautious stance. Powell said the central bank is closely monitoring both downside risks to growth and ongoing price pressures.

He also noted that the large-scale asset purchase programs used in the past helped support the economy during difficult periods while keeping borrowing costs lower. According to Powell, there is still no clear evidence that the size of the Fed’s balance sheet poses a major risk, nor is there direct proof that bond-buying programs were the main cause of inflation.

The message from the Fed is becoming increasingly clear: controlling inflation remains the priority, but not at the cost of sacrificing economic growth and stability entirely.