U.S. Economy Can Withstand Fed Tightening, Omicron Surge, Powell Says

Federal Reserve Chair Jerome Powell vowed to fight inflation in testimony before U.S. lawmakers who are expected to focus on the recent surge in prices as they consider him for a second term as head of the central bank. Federal Reserve Chair Jerome Powell, in a congressional hearing that pointed to his likely confirmation for a second term as head of the U.S. central bank, said on Tuesday the economy should weather the current COVID-19 surge with only “short-lived” impacts and was ready for the start of tighter monetary policy. Powell was openly endorsed by Republicans and Democrats on the…