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Jerome Powell insists on how the Fed would react to the economic slowdown

Lawmakers lobbied the Federal Reserve Chairman Jerome Powell about how the central bank would handle the trade-offs it might face if its interest rate increases slowed the economy sharply but did not quickly reduce inflation.

Powell said on Thursday that in such a scenario, the Fed would be reluctant to switch from a rate hike to a cut until it sees clear evidence that inflation is coming down convincingly.