Federal Reserve Chairperson Jerome Powell attended a hearing of the Senate Committee on Finance, Housing and Urban Affairs to deliver semi-annual monetary policy testimony and answer questions from lawmakers. Key points of Powell's testimony include: Inflation has moved much closer to the 2 per cent long-term target, although still slightly higher, and risks under the dual mandate are being watched closely. Recent data suggest that economic activity continues to expand at a solid pace. A wide range of indicators suggest that the labor market as a whole is in balance, without significant pressure on inflation. The Federal Reserve will continue to reduce the size of its securities holdings. Monetary policy has become much less restrictive, and the economy remains strong, so there is no need to rush to adjust the policy stance. The FOMC will assess the latest data, changes in the economic outlook, and the balance of risks. As the economy evolves, the Fed will adjust its policy stance to maximize employment and price stability.